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Northern Rock

My Lords, the Minister is rightly held in high affection by this House. However, even he cannot disguise the fact that this has been the biggest saga of incompetence in any bank failure in our history—there have been a few. Speed is of the essence in this matter. Is the Minister not aware that in 1984, when I was Chancellor and Johnson Matthey Bankers got into serious difficulties, after a few unsuccessful days of talks to try to get a private sector solution I authorised the Bank of England forthwith to acquire the bank, which it did? Is the Minister also not aware that, having taken all this time—at great cost and great cost to the reputation of the City of London—to grasp this nettle, the Chancellor has done the wrong thing? Is he not aware that there is no public interest whatever in perpetuating the life of this failed institution? Indeed, there is a considerable public interest in not doing so. Is the Minister not aware that the bank should be closed for business forthwith and the loan book—much of which, I fear, is not nearly of such good quality as either the Financial Services Authority or the Government make out—should be sold off in an orderly way to maximise value? Finally, will he give the House an undertaking that there will be no question of any compensation whatever for the shareholders, whoever they may be, until the taxpayer has received back in full the massive loan that has been made to this bank?