The Prime Minister David Cameron has rejected calls from an MP for an independent inquiry into the Arch Cru investment funds scandal.
Labour's Tom Greatrex suggested an inquiry during Prime Minister's Question Time in November, and David Cameron had promised to look into what could be done to help investors.
However, in a letter sent to the MP recently, he ruled out an independent inquiry into the scandal and the key organisations involved.
He wrote the government had "yet to be persuaded" that this would be appropriate, the Mail on Sunday reported.
He did acknowledge "real difficulties" that 20,000 Arch Cru investors were facing and added he was sorry to learn of the losses they had suffered.
Despite the news, Greatrex continued to press for an inquiry.
He told the paper: "The response from the Prime Minister will dash the hopes of the thousands of people across the country who are looking for strong action from their Government.
"It is fully within his gift to order an inquiry and he should do so as soon as possible."
Greatrex has led efforts by MPs to shed more light on the Arch Cru affair and is co-chairman of an all-party parliamentary committee on the issue.
Three years at the Treasury
Address key mistakes
Letter from the frontline
Breaching SEC rules
In Leeds since 1969