David Cameron has launched a speedy inquiry into Barclay’s rate-rigging scandal to deal with the widespread criticism of British banking.

Cameron said the Serious Fraud Office were looking at whether any criminal prosecutions could be brought. “I want us to establish a full parliamentary committee of inquiry involving both Houses chaired by the Chairman of the House of Commons Treasury Select Committee”, he said.

“This inquiry will take evidence under oath have full access to papers, officials and Ministers - including Ministers and Special advisers from the last government and it will be given, by the government, all the resources it needs to do its job properly”, he elucidated.

The Prime Minister assured saying, “This is the right approach because it will be able to start immediately, it will be accountable to this House and it will get to the truth quickly, so we can make sure this can never happen again.”

The parliamentary inquiry will have powers to summon witnesses and take evidence under oath and will be given access to official papers, Cameron’s official spokesman has said. It will be expected to sit in public.

Discussions have already taken place over what assistance can be offered by Treasury officials and Government lawyers during its investigations. The precise timetable for the inquiry, including the question of whether it will sit through Parliament’s summer recess, will be set by its chairman, Treasury Committee chair Andrew Tyrie.

Meanwhile, Labour leader Ed Miliband told MPs vowed to continue to strive for a “full and open” independent inquiry, with hopes to secure a vote in the House of Lords tomorrow.

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