Banking scandal may have increased homelessness
Attempts to manipulate interest rates that led to the resignation of Barclays chief executive Bob Diamond could have caused people to lose their homes, the housing minister has said.
Speaking in the House of Commons yesterday, ahead of the resignation of Mr Diamond, Grant Shapps said: ‘All the research into homelessness proves that there are a lot of different causes, and Libor may be a contributory factor if it transpires that mortgage rates have been adjusted as a result.’
The Financial Services Authority last week fined Barclays £290 million for trying to manipulate the inter-bank lending rate – Libor – between 2005 and 2008. Mr Diamond, who stood down this morning, was in charge of the bank’s investment arm at the time.
Chancellor George Osborne yesterday announced that a joint committee of the House of Commons and House of Lords will look at what lessons need to be learnt from the scandal.