30/06/2012 BBC Weekend News

The government orders an investigation into how banks set

key interest rates. But, after numerous scandals, the coalition

and Labour can't agree on how the banking sector should be reformed.

David Cameron opens the door for a referendum on Europe, saying the

majority of people want a change in Britain's relationship with

Brussels. World powers agree a plan for a

transitional government in Syria, to try to end the fighting.

Thousands across the country pay tribute to Britain's fighting men

and women, on Armed Forces Day. And Murray's late-night marathon.

Britain's number one battles through to the quarter finals at

Good evening. The government has ordered an

independent review into the setting of key interbank lending rates, at

the heart of a scandal involving staff at Barclays and other major

banks. The investigation will report back within weeks. Meanwhile,

the chief executive of Barclays, Bob Diamond, has been summoned to

appear before MPs on Wednesday. Our political correspondent Carole

Walker reports. What is to be done about the

conduct of some bankers who have lied and cheated for personal gain?

The politicians have rather different views of the right

response. Barclays was fined �290 million. Some staff had adjusted

the rate at which banks lend to each other, the LIBOR, which

affects mortgage rates. None of those responsible has been

subjected to penalties so far. Today, the Prime Minister has said

a review would look at what has gone wrong. It is very important

the government takes all the actions necessary, holding bankers

accountable, making sure they pay their taxes, there is transparency,

the criminal law should go where it needs to uncover wrongdoing.

government will hold an independent review to be set up next week. It

will propose new regulations on the way the interbank lending rate

works. These could be included in the Financial Services Bill going

through Parliament, and make criminal prosecutions easier in

future. Labour wants a wider inquiry led by a judge, to look at

the behaviour and ethics of the banks, along the lines of the Lord

Leveson inquiry. Ed Miliband warned the public will not tolerate the

establishment closing ranks. David Cameron says he's not really sure

we need an inquiry. I've got a message for David Cameron. The

British people will not tolerate anything less than a full and open

and independent inquiry. Next week, Barclays' chief executive Bob

Diamond will be questioned by the Treasury Select Committee. He said

inappropriate conduct at the bank was limited to a small number of

people. That's unlikely to impress MPs. This latest scandal has

already damaged the reputation of Britain's financial services

industry. The politicians know they have to agree the right response,

if they are to restore public trust. Carole is in Westminster now. We

heard the Prime Minister's comments on the banks today. He's also had

some new things to say on the issue of a referendum on Europe?

The Prime Minister riding for tomorrow's Sunday Telegraph has

taken a step closer to offering a referendum on Europe, which his MPs

have been pushing him on. He says it isn't right to have a referendum

yet. Europe is changing very fast, so it is our relationship with it.

He wants to get more powers back, legislation on home affairs, social

affairs, the Working Time Directive. He thinks that could in future be

put to the British people at the next election or in a referendum.

No firm commitment yet but a step closer.

This comes after renewed pressure from within his own party.

The 100 MPs this week have been writing on this issue. Liam Fox

will deliver a speech on Monday in which he will say that not only

should Britain begin now a renegotiation of our relationship

with Europe, to have a much looser economic relationship. But

furthermore, if Britain doesn't have what -- doesn't get what it

wants, the government should be prepared to hold a referendum and

recommend we pull out altogether. That is much further than David

Cameron will go, but it will be seen as a rallying cry for many

Conservative MPs. A international meeting on the crisis

in Syria has called for a transitional government to be set

up, to end the fighting. But the summit of Foreign Ministers ended

without an explicit demand for President Assad to step down, as

Britain and the United States had hoped. The meeting took place in

Geneva, from where our correspondent Paul Wood sent this

report. Without a viable peace plan, this

is a catastrophe. A civil war, perhaps a regional conflict. That

was the United Nations envoy's warning. His solution, a

transitional government of national unity. A transitional governing

body could include members of the present government, and the

opposition, and other groups, should be formed on the basis of a

mutual consent. To the United States, that can only mean that

President Assad would step down. What we have done here is to strip

away the fiction that he, and those with blood on their hands, can stay

in power. We and our partners made clear to Russia and China that it

is now incumbent upon them to show President Assad the writing on the

wall. Russia disagrees. They don't want another Western-led regime

change in the Middle East. They continue to support President Assad.

Britain would have liked today's agreement to go much further.

is a compromise between the countries which differ in

perspective on the Syrian crisis. Meanwhile, it's believed some 700

people were killed in Syria this week alone. The opposition says

1600 have died in total in the uprising, almost one-third of those,

5,000, since a United Nations ceasefire was announced two months

ago. The opposition have always made clear they will not consent to

join in any government of which Assad remains a part. He has never

given any sign he would contemplate stepping down. The same stalemate

exists now as before this meeting convened. Every day, the absence of

a political statement means the violence is steadily worsening.

The Foreign Secretary will be speaking to Andrew Marr tomorrow

morning, here on BBC One at 9.30am. Egypt's new president, Mohammed

Morsi has been formally sworn in. Backed by the Muslim Brotherhood,

he's promised his rule will signal "a shining new page in his

country's history." Mr Morsi is Egypt's first civilian leader, and

has vowed to reclaim powers recently stripped from the

presidency, by the country's powerful military. Our

correspondent Jon Leyne reports from Cairo.

In the presidential limousine, surrounded by police motorcycle

outriders, is Mohamed Morsi, the once banned Muslim Brotherhood

member. Egypt can't quite believe it, or the fact he did not demand

that all streets should be cleared of traffic for him, as they always

used to be for Hosni Mubarak. It wouldn't be Cairo without traffic

chaos. First, the oath of office at the constitutional court. Then, to

Cairo University. He pledged to revive the country, after years of

decline. An ambitious address which will give him much to live up to.

TRANSLATION: Today, together, we start a new phase in the history of

Egypt, and we turn over a hideous page, and open a new shining page,

God willing. Among the crowd outside, hopes were running sky-

high. I hope it will be a more democratic country. All Egyptians

are equal. I hope the constitution will be carried out. That

everything in Egypt will be better. Everything Mohamed Morsi has done

today has has been designed to show Egypt is entering a new era. He

wants to say he is a man of the people who will work for the

Egyptian people to whom he owes his power and authority. But who has

the real power? Today, the military leaders saluted their new President.

But, even as the military formally handed over control, the question

remains unresolved. Engineers working on the East Coast

Mainline, which was damaged during the storms on Thursday, say

services should be back to normal tomorrow. The Environment Secretary

Caroline Spelman has been in the north east, seeing for herself some

of the flood damage. Judith Moritz reports from Gateshead.

This torrent pouring done the Gateshead Road was filmed on a

mobile phone on Thursday. The rain came down so quickly, the trains

were overwhelmed and this area was suddenly submerged. Residents

looking out of their windows couldn't believe what they were

seeing, as gardens disappeared underwater. Kitchens flight this

one belonging to andrew macro were destroyed, his sitting room was

ruined. Today, with what have gone, Andrew was trying to make the best

of a bad situation. Set a date is gone. All of the flooring has come

up. A what about the cost, are you insured? No insurance. It is going

to take a while to get back on my feet. A few doors away, the

Environment Secretary came to see the flood damage for herself.

the unpredictability of the increasing frequency of extreme

weather events we are seeing, our part as a government is to build

strong flood defences and make sure insurance remains universal and

affordable. This area experienced one month's rainfall in two hours.

Houses but this one which aren't on riverbanks or in known flood areas

were simply caught out by a few hours of rain which will now lead

to months of disruption. After some terrible delays on the rail network,

sections of track but this one in Northumberland are being rebuilt.

Tons of rubble had slid onto the line. Trains between London and

Leeds are now running. There are delays between Newcastle and

Edinburgh but that is expected to return to normal tomorrow.

The Members of the Army, Navy and Royal Air Force have been taking

part in events across the country, to mark Armed Forces Day. In

Plymouth, thousands lined the streets as men and women from all

three services marched through the city. And in Afghanistan, the Chief

of the Defence Staff has paid tribute to all those who serve. Our

defence correspondent Caroline Wyatt reports.

A band of the Royal Marines marched through Plymouth to celebrate Armed

Forces Day. Reservists and cadets joined those serving as thousands

of well-wishers came to show their support. The Prime Minister was

there to meet veterans of previous wars. A hero of a more recent

conflict, Lance Corporal Johnson Beharry, held the Olympic torch.

He earned the highest commendation for his bravery in Iraq, the

Victoria Cross. The saving the lives of his colleagues. Across

Scotland, thousands took part in a series of events. The country's

four largest cities held parades. In Helmand, the chief of the

defence staff came to meet and thanked the men and women serving

on operations in the sweltering Afghan summer heat. My overriding

message is a very big thank you to the -- and the people in Britain

are taking this as an opportunity to thank the troops. It is an

opportunity for the armed forces to say Big Ben due to people who

support us so well. The British forces here had a normal working

day. On patrol or training Afghan forces, as the handover of security

gathered so -- gathers pace. This brigade says this market has not

seen a single shot fired in the months they have been here. They

point to it as proof that all the hard work and many sacrifices in

Helmand are finally bearing fruit. Sport now. And for a full round up

of all the day's action, here's Katy Gornall at the BBC Sport

Centre. Tennis first. Andy Murray was deep

into a dramatic match on centre court against Marcos Bhagdatis,

after a break to close the roof on centre court.

Centre court in the evening has proved a difficult place for the

favourite. How would Andy Murray find it against Marcos Baghdatis?

Tight, was the answer, at least in the first set, until he broke in

the 11th game. Even when it won, might Andy Murray come up short?

The answer in the second set was yes. Marcos Baghdatis began to look

at home. And who would soon break Andy Murray. The British No. 1

could only watch the second set slip away. One set all and it felt

like a relief when the match was suspended for the roof to be closed.

Initially, Andy Murray could take advantage. While he failed to

convert break points, Marcos Baghdatis did. It was he who began

to play with aplomb. Andy Murray, in contrast, looked disconsolate.

But then he began to haul himself back. Whether furious with himself

for the ball for life, he broke free, and broke Marcos Baghdatis

for the set. That was 2-One, Andy Murray had

only 28 minutes before play was going to be suspended at 11pm, sure

you can finish the match? How wrong we were, 6-1 he took the 4th set.

Going through to the second week. As he said, I was very nervous

today, a tricky first week and I will need to play better in the

second week. At least he will have a chance.

A poor start left Usain Bolt trailing here. But he still

qualifies for the London Olympics. A Britain will not be represented

in the women's 4x100m relay at the Olympics, after the team were

disqualified from their semi-final at the European Championships in

Helsinki. One runner, Haley Jones, was adjudged to have run out of her

lane. The disqualification has wider implications as well. It

means Team GB drop to 17th in the women's sprint relay rankings, with

no events remaining, and therefore will not be able to compete at the

London Olympics. Bradley Wiggins said he'd had a

"perfect start", after his second placed finish in the Tour de France

prologue in Liege today. Team Sky's Wiggins, who is bidding to become