STROUD District Councillor Molly Scott Cato will be interviewed on Sky News later today about the manipulation of inter-bank lending rates by Barclays and the resignation of its chief executive Bob Diamond.

Councillor Scott Cato, who represents the Valley ward and advises the Green Party nationally on economic policy, is calling on the government to withdraw Barclays bank’s licence to operate.

She believes the still unfolding scandal, which prompted Mr Diamond to step down this morning, shows that Barclays is ‘not a fit company to hold a banking licence’.

Cllr Scott Cato has now launched a campaign to get the bank stripped of its licence and has started an online petition to the Treasury calling for it to be revoked.

A television crew from Sky News is visiting her at home this morning and her interview is expected to be broadcast around lunch time.

In a statement to accompany her online petition, Cllr Scott Cato said: "Within a capitalist economy banks perform a vital function in facilitating the production and exchange of goods and services.

"In return for fulfilling this role responsibly they are allowed to hold banking licences, which brings them great benefits in terms of the ability to create money through making loans.

"The systematic manipulation of the LIBOR value to serve its business interests makes clear that Barclays is not a fit company to hold a banking licence."

Speaking to the SNJ earlier today (Tuesday), Cllr Scott Cato said the banks had abused their licences to print money for themselves.

On the subject of Mr Diamond’s resignation, she said ‘it is one corrupt banker gone but it is not a solution.’

Cllr Scott Cato said the vast majority of the population were sick of the way the banks had behaved and she called on the public to apply pressure on the government to overhaul the banking system.

If they failed to do this, she said, there were alternative places where people could save and borrow money, such as the Credit Union and banks which have strong ethical investment credentials like the Co-operative and Triodos.

"Let this be very clear: if the coalition government will not reform, restructure and clean up our banking system then we, the citizens, can," said Cllr Scott Cato.

Readers can sign the e-petition at the the following link: http://epetitions.direct.gov.uk/petitions/35446