Oral question asked in the House of Lords, by Lord Harrison (Labour). It was answered on Tuesday, 30 March 2010.

Banking: Government Support

Question: Is my noble friend describing a win-win situation, in so far as when we come to sell some of these now state-owned banks back to the private sector, there is the prospect of making a profit? That wholly justifies the Government’s swift and determined intervention during the financial crisis to buy in those banks in order to save the banking system.

Answer: My Lords, in life I have many times anticipated win-win situations, but I have yet to experience one. However, the total amount of taxpayers’ money currently at risk in terms of the difference between the market valuation and the amount that we have invested is only £6 billion. I say "only" carefully, because it is a very large amount of money, but in the context of the effective rescuing of the banking system it represents very good value for money. I remind noble Lords that my right honourable friend the Chancellor of the Exchequer told the other place last week that we have already earned £8 billion in fees from the banks for the support which we have provided over the past 18 months.

Secondary information