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Banking Bill

I agree entirely with what the Chancellor said to the House. The hon. Gentleman will be aware of the statement that the Chancellor made and the information that is available in government, which, if he looks at it, he will find provides him with the answers he seeks to the question he raises. At this point, I should briefly mention the two additions to the Bill that my right hon. Friend the Chancellor signalled in his recent pre-Budget report. They will increase the legislation's effectiveness in allowing the authorities to deal with risks to financial stability and to safeguard London's competitiveness as a global financial centre. First, they will extend the Treasury's powers under the special resolution regime to allow it to take bank holding companies into temporary public ownership in cases where the resolution of only the deposit taker or deposit takers within a banking group would not, by itself, be sufficient to prevent a serious risk to financial stability, public funds, or both. The second addition is a response to the experience of the administration of the UK subsidiary of the failed US investment bank, Lehman Brothers—Lehman Brothers International (Europe). The Government propose to take a power in the Banking Bill to introduce, by secondary legislation and after a formal review, a new special insolvency procedure for investment firms that hold client assets or client money. The expert liaison group, which I set up earlier this year, will help the Government in this area. Lord Myners, the Financial Services Secretary, intends to table these amendments for discussion in Committee in the other place. On 26 November, the Government Chief Whip in the other place set out how we intended to proceed with the Banking Bill in the current Session, with the support and agreement of the usual channels. The No. 2 Bill that was introduced in the other place yesterday is identical in every respect to the Banking Bill that we are considering today, and the procedure allows the other place an additional fortnight to consider the Bill, which I am sure hon. Members will agree is entirely to the benefit of all concerned. As the House will be aware, the Banking Bill was carried over to the current Session and, if hon. Members consent today, it will complete its passage in this House and go to the other place tomorrow. At that point, the No. 2 Bill will be dropped and all further consideration in the other place will be on the Bill sent from this House today.