“First, we need criminal prosecutions, we need the full force of the law brought against those who have done wrong, and if they are found guilty and if their offences warrant it, they should go to jail.
“Second, we need proper regulation of the market because the rules at the moment are clearly not being enforced or are not working. If they do not allow for criminal prosecutions, they should be changed so that can happen.
“Third, we need to end the swaggering casino culture in banking that makes them think their responsibility is not to serve the public but to serve themselves: they think they are too big to fail, too powerful to be challenged.”
He called the rigging scandal “a wake-up call”, adding:
“Bob Diamond has big and immediate questions to answer. We want to know what happened, what he knew and when he knew it. And how this was possibly allowed to happen on his watch.
“The public and Barclays shareholders will hold him to account for those answers. And we should hear them straightaway.”
• Osborne, Barclays, the Cayman Islands and tax avoidance 17 Apr 2012
• A word for 2012: Liquidation 4 Jan 2012
George Osborne is due to address Parliament on the scandal later this afternoon.