Osborne savages Balls on Libor

The Osborne/Balls clash today was one of the most brutal I have seen in parliament. Osborne, leaning across the despatch box, mockingly enquired, ‘who was the City Minister when the Libor scandal happened? Put your hand up if you were the City Minister?’ Balls looked increasingly cross as Osborne continued down this path, demanding that the shadow Chancellor take ‘personal responsibility’ for the failures of the regulatory regime.

Labour argues that the public are turned off by this kind of stuff; that they want to see answers rather than point-scoring. Even Darling — hardly an admirer of a man who coveted his job for so long — offered a partial defence of Balls, telling Osborne that the public don’t want partisanship on this issue. But Balls’ involvement in devising the regulatory system that failed so badly is a political ball and chain for him, limiting his ability to talk about what needs to be done to sort out the banking system.

The Joint Committee of both Houses that will be set up to look in to the culture and professional standards of the banking industry will be chaired by Andrew Tyrie, one of the most independent-minded people in parliament, and report by the end of the year. Subject to parliament’s agreement, it’ll be able to call MPs and Lords to testify under oath. It will also, judging by an answer that Cameron gave to Gisela Stuart, be encouraged to use its parliamentary powers to ask banks to hand over emails and other relevant documents.