Banks are scared of speaking the truth when giving evidence to the Treasury select committee for fear of offending the FSA, according to TSC member Mark Garnier.
Speaking at a PanaceaIFA event at M&G Investments offices in London this morning, Conservative MP Garnier said evidence given by the banks did not always tally with what was said in private.
He was responding to Panacea chief executive Derek Bradley who asked Garnier if he thought those who gave evidence to the committee were ever economical with the truth.
Garnier said: “Yes absolutely. This is something that certainly comes up in evidence when we have had chairmen and women of the banks.”
“We ask them: ‘Do you think the FSA are a good organisation? They says: ‘Yes they are very helpful, they are very wise in what they do.’ But in private it is a completely different story.”
He added: “It is not a great conspiracy but these companies, to a certain extent, have commercial interests and do they want to be beaten up by the FSA? I do not think they do.”