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Another banking scandal but Tories & Lib Dems won't act

Just when you think that the investment banks have sunk as low as they can go, along comes another scandal that takes them down a notch or two further, writes Labour Parliamentary Candidate for Ipswich, David Ellesmere.

The latest scandal is that banks have been caught rigging foreign exchange rates so they could rip off their customers.


Following the subprime borrowing scandal, the Payment Protection Insurance miss-selling scandal, the LIBOR fixing scandal and the Mexican drug money laundering scandal there must be a temptation to shrug your shoulders and just add it to the list of past misdemeanours.

But this wasn’t long ago. It was happening right up until October last year. It continued for at least two years after the similar LIBOR fixing scandal came to light.

And yet again, one of the banks caught up in this was RBS, the bank which was bailed out to stop it going bust in 2008 and is 81% owned by the Government.

As an all-but nationalised bank, the Government should be forcing it to set an example in the way it operates. Instead RBS has been systematically breaking the law from the day it was rescued.

Yet no banker has been prosecuted for any of these crimes, let alone sent to prison.

The fact is that this Government has got no desire and no intention of putting the banking industry in order. When faced with a choice George Osborne and David Cameron will always favour the interests of the bankers against the rest of us.

Any regulation they have introduced has been timid and grudging. In fact they have gone out of their way to try and water down regulation. George Osborne has racked up a legal bill of over £100,000 of taxpayers’ money fighting a legal case to stop bankers’ bonuses being capped.

The banks caused the economic collapse in 2008 that we are still recovering from. They have shown no contrition, they’d do it again, and this Government won’t do anything to stop them.

A Labour government will ensure that those who cheat the system are held to account.  You can help us make that happen by campaigning for a Labour Government - We can't defeat this Tory-led Government without winning here in Ipswich.

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