Labour relent over banks probe row
18:05, Jul 5 2012
Labour has agreed to take part in a parliamentary investigation into the banking scandal after its demand for a judge-led public inquiry was rejected.
Shadow Chancellor Ed Balls said the party would cooperate with plans for MPs and peers to carry out the probe but insisted the case for an independent inquiry was stronger than ever.
Treasury select committee chairman Andrew Tyrie, who the Government wanted to run the inquiry, had threatened to pull out unless there was cross-party support.
A Labour source said Mr Tyrie was an "honourable man" but claimed his inquiry would be "incredibly limited".
"The Government's position has been shown to be utterly shambolic," the source added.
"No one can pretend this is the full-scale public inquiry into the culture and practices of the banking industry which the public wanted."
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