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Banking Bill

I thank the Minister for setting out the Government’s views. I remain concerned that the FSCS, especially once it is pre-funded, will look like a convenient pot of money to be used to pick up costs. I am not convinced that an insolvent estate should not in effect pay some of the costs alleged to that insolvency and thereby reduce the amounts available to creditors, as that is a necessary cost. The Minister said there was a strong argument that the banking system or ongoing banks should pay. The trouble with that argument is that it actually means that consumers will pay. The banks do not pay in any real sense. The banks’ shareholders do not even pay—this is just another cost which is passed on to consumers. The issue, therefore, is whether we localise the cost on to the failure or spread it over consumers. That is the only real issue between us. I would like to localise the costs where the failure occurred, even if that meant less for the creditors or the residual amounts that come out from a sale. I shall consider what the Minister has said between now and Report, and beg leave to withdraw the amendment. Amendment 161 withdrawn. Amendment 162 not moved. Clause 168 agreed. Clause 169 agreed.