Chancellor of the Exchequer George Osborne was defeated by lawmakers demanding a licensing regime for U.K. bankers, after he pushed back an attempt to force the break-up of banks with both retail and investment arms.
Former British finance minister Nigel Lawson said investors have taken account of the risk that the May 6 U.K. election outcome may mean a hung parliament with no single party controlling a majority of seats. “A hung parliament is undesirable, because you do need the strength of an overall majority in order to be able to behave really decisively,” Lawson, the chancellor of the exchequer under Conservative Prime Minister Margaret Thatcher from 1983 to 1989, told Bloomberg Television today. Still, “the prospect of a hung parliament is already priced into the market.”
Nigel Lawson, who served as chancellor of the exchequer under Margaret Thatcher and is now an advocate of splitting banks’ retail and investment arms, is among five members of the House of Lords selected to sit on a parliamentary investigation into the Libor-rigging scandal.
U.K. finance minister George Osborne and Bank of England Governor Mervyn King will face scrutiny from Parliament’s Treasury Committee led by Conservative lawmaker Andrew Tyrie , who beat rival Michael Fallon to become chairman.