Oral question asked in the House of Lords, by Lord Elystan-Morgan (Crossbench). It was answered on Wednesday, 25 February 2009.

Business: Corporate Governance and Ethics

Question: My Lords, does the Minister accept that those bankers who have recklessly exposed their investors’ money have come very near to committing moral theft? In so far as the criminal law boundary is concerned, Section 6 of the Theft Act 1968 stipulates that a person who intends to deal with the property of another as if it were his own to dispose of, regardless of that person’s rights, commits an act that is tantamount to theft.

Answer: My Lords, I have said in the past that a small number of banks globally have acted in a reckless, witless and feckless manner. Whether there has been a breach of criminal or company legislation will be a matter for prosecuting authorities and for subsequent directors of those organisations. I am sure that, given the extent to which there have been significant changes in boards of directors, they will be looking at past matters to determine whether any action is required.

Secondary information

Type: Oral question
Reference: 708 c201-2
Session: 2008-09
Oral question type: Supplementary
Chamber / Committee: House of Lords chamber
Subjects: Directors Financial services Financial institutions Ethics Corporate governance
Link: View this Oral question on www.publications.parliament.uk