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Banking Bill

We all have to recognise that the Bank of England will not be involved in these circumstances any more than the Financial Services Authority or the Treasury. None of them will get involved in these circumstances unless a bank is in such trouble that it is presenting a threat to the financial system and to the public interest. When the authorities act, it is not the case that they are dealing with the world in perfect viability; far from it, they are dealing with crisis and institutions in crisis. There is bound to be an unfortunate dimension—even a toxic one—as far as such institutions are concerned. The issue we are trying to resolve in Clause 12 is whether this structure is a valid and valuable option for a solution to such difficult circumstances. That is why the clause should stand part of the Bill.