Oral answer to question provided on Wednesday, 8 October 2008 in the House of Lords, by Lord Davies of Oldham (Labour).

Banking: Lloyds TSB and HBOS

Answer: My Lords, the Chancellor’s Statement, made earlier in the other place, answers a great number of these questions. The noble Lord will have a chance to question that Statement very shortly. The issues that he raised were exactly those which have exercised the Government.

This is an answer to the Oral question asked on Wednesday, 8 October 2008 by Lord Razzall (Liberal Democrat).

Question: My Lords, I am sure that the Minister will accept that today’s events mean that things have rather moved on since the HBOS/Lloyds proposed merger. Does he accept that we are looking to the Government for a clear statement on two fundamental issues of policy? First, what conditions will the Government impose on banks that receive capital from the taxpayer to ensure that the money is spent for the benefit of customers and consumers? Secondly, does he accept that the wider government announcement today will inevitably lead to some suspension of competitive protection for consumers? Without wishing to press the Minister for the detail of government policy on this topic, will he undertake to make a statement to the House shortly?

Secondary information