So President Barack Obama has offered Ben Bernanke a second term as chief of the Federal Reserve, the US central bank.

Krishna Guha, the FT’s US Economics Editor, has pointed out that economists, investors and fellow central bankers overwhelmingly favour the Fed chairman’s reappointment. Francesco Guerrera, the FT’s US Finance and Business Editor, says the same is true of Wall Street bankers. Stephen Roach, however, writing for the Financial Times, makes the case against Bernanke.

The chairman of Morgan Stanley Asia likens the decision to a doctor who has been guilty of malpractice being given credit for coming up with a miracle cure. The Baseline Scenario, a US blog, asks which Bernanke will be reappointed.

Scotland’s Justice Secretary accused Libya of breaking a promise not to give freed Lockerbie bomber Abdelbaset Ali Mohmed al-Megrahi a hero’s welcome on his return home, PA reports.

 ”It is a matter of great regret that Mr Megrahi was received in such an inappropriate manner,” Kenny MacAskill told an emergency session of the Scottish Parliament. “It showed no compassion or sensitivity to the families of the 270 victims of Lockerbie.”

UPDATE

The Libyan was greeted by crowds, some waving Scottish flags, when he landed at Tripoli on Thursday after being released on compassionate grounds by Mr MacAskill because he is dying from prostate cancer, adds Andrew Bolger, the FT’s Scotland correspondent.

“It showed no compassion or sensitivity to the families of the 270 victims of Lockerbie,” said Mr MacAskill. “Assurances had been given by the Libyan government that any return would be dealt with in a low-key and sensitive fashion.”

Iain Gray, the Scottish Labour leader at Holyrood, said the Scottish National party government made “a wrong decision, in the wrong way, with the wrong consequences”.

Mr Gray said: “Does he understand how much his decision has angered the silent majority in Scotland? Does he understand how ashamed we were to see our flag flying to welcome a convicted bomber home?”

Annabel Goldie, the Scottish Conservative leader, said: “I want to make clear that the decision to release Mr Megrahi was not done in the name of Scotland or in the name of this parliament or in my name.”

Ms Goldie asked why, if Mr Megrahi’s condition was so severe that keeping him in prison is inhumane, could he not have been released to a secure house or a hospice or a hospital in Scotland.

She said: “Is this SNP government seriously suggesting that our Scottish police who coped so admirably with security arrangements for G8 Leaders could not adequately protect Mr Megrahi?”

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