Oral question asked in the House of Lords, by Lord Forsyth of Drumlean (Conservative). It was answered on Wednesday, 26 November 2008.

Banking: Northern Rock

Question: My Lords, on the subject of taxpayer liabilities in respect of the bank rescue schemes, how much taxpayers’ money, to the nearest billion, has been lost as a result of the dividend policy on the underwriting of the shares of Royal Bank of Scotland and other banks?

Answer: My Lords, I am pleased to notify the noble Lord that no money has been lost. These are long-term commitments. As a former employee of a major American bank, he well knows that one cannot factor in a specific analysis to explain a market development. The stock market has continued to fall since we took action to support the British banking system. That action has been widely acclaimed throughout the world as right, correct and proper to defend depositors. We are taking action when it is required.

Secondary information