McFall attacks traders

One of the leading figures on the new committee of MPs and peers which is examining the banking sector has said the City traders behind the Libor and other scandals should be treated as no better than street drug dealers.

Lord John McFall of Alcuith, formerly chairman of the Treasury Select Committee, made it clear that he will be examining a radical change of City regulations when the new body leads a major review into the sector.

He wrote on the Labour party's website: "Given that there appears to be more serious crime and misdemeanours taking place within the walls of some of our financial institutions presently than there is in our town centres at weekends, maybe one initiative ready for implementation should be a financial police service, separate from the City of London police."

He added: "Perhaps it is time to start treating the dealer on the trading floor engaged in these illegal activities with the same contempt as the dealer on the street."