---

World Leaders Summit

My Lords, does the Leader of the House think that the issue of derivatives raised by the noble Lord, Lord Barnett, will be solved by regulation or by the fact that the markets are now and certainly in the future will be much more aware of the problems associated with such instruments? Will that not in itself police them to a far greater extent than has been the case until now, and far more than could be achieved through regulation by former bankers or by anyone else, because they will be extremely difficult to regulate? Further, will the other countries which are apparently imitating us also going to lend to their banks at 12 per cent and expect those banks to lend on to their customers at rates regulated at close to 3 per cent?