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Hearings proof that Libor needs reform

We're getting well used to these select committee hearings.

Yesterday it was the turn of the current, former, now current chairman of Barclays to give evidence to the MPs, and he certainly seemed to have got the hang of this questioning lark.

Giving evidence on the Libor fixing scandal, Marcus Agius let slip that former CEO Bob Diamond may have misled the committee last week, something which will no doubt lead to much more questioning of the man who proclaimed his love for the bank.

But while the pressure seems to be building on the shoulders of Mr Diamond, it's increasingly apparent that it is the system of setting Libor rates itself which needs attention.

Expecting traders - whose bonuses rely on a monthly profit and loss account - to adhere to a system of which seems to include a lot of subjective indication, is frankly bonkers.