David Cameron, the prime minister, said on Monday that a full parliamentary inquiry would be held into the Libor rate-fixing scandal and standards in the banking industry, with witnesses called to give evidence under oath.
The joint inquiry by peers and MPs will report by the end of the year and will be led by Andrew Tyrie, the Conservative chairman of the Commons Treasury select committee.
The committee will feed proposals into a parliamentary bill being introduced in January to enact the recommendations of Sir John Vickers, who chaired an earlier inquiry into future models for the regulation of banking.
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