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Banking Bill

One of the problems with the code is that it raises a lot of controversial issues and does not have any clear direction. For example, paragraph 92 was cited earlier. It applies to banks in temporary public ownership and states: "““Immediately following the transfer of securities””—" that means that the bank is 100 per cent in public ownership— "““and for the period of stabilisation, the Treasury may take a ‘hands on’ role in managing the affairs of the bank. However, once stabilised, the Treasury shall seek to introduce corporate governance arrangements in line with best practice as soon as is reasonably practicable. The nature of these arrangements will depend on how likely the bank is to remain in public ownership””. " We could probably have an exciting two-hour debate on what that paragraph means in certain circumstances. My noble friend’s proposal that this code of practice should be subject to parliamentary scrutiny and debate has got to be right.