Does the Minister take on board my wider point that depositors with those branches depend in part on the guarantee given by the home state of the branch? They may not be aware of that issue, although they should be aware of it now. How can we ensure that depositors...

Does the Minister take on board my wider point that depositors with those branches depend in part on the guarantee given by the home state of the branch? They may not be aware of that issue, although they should be aware of it now. How can we ensure that depositors...

I broadly support the hon. Gentleman's view, but I have some reservations about the timing. However, we are not precluding a private sale if an institution has gone into a bridge bank or even if it has come under temporary ownership. If at a slightly later stage somebody comes out...

I broadly support the hon. Gentleman's view, but I have some reservations about the timing. However, we are not precluding a private sale if an institution has gone into a bridge bank or even if it has come under temporary ownership. If at a slightly later stage somebody comes out...

I beg to move, That the clause be read a Second time.

I beg to move, That the clause be read a Second time.

There is an element of incredulity about the Minister's statement. Can we just be clear? The Government lent those banks—those finance houses—£37 billion. In return, we expected them to show some restraint on repossessions, yet Northern Rock is repossessing faster than any other financial institution. We expected them, as a...

There is an element of incredulity about the Minister's statement. Can we just be clear? The Government lent those banks—those finance houses—£37 billion. In return, we expected them to show some restraint on repossessions, yet Northern Rock is repossessing faster than any other financial institution. We expected them, as a...

I could not allow the hon. Gentleman's contribution to pass without asking him why he does not shift his account from the Halifax to the Nationwide building society, with which I have had an account all my life. It is still a mutual. Would it not be better to allow...

I could not allow the hon. Gentleman's contribution to pass without asking him why he does not shift his account from the Halifax to the Nationwide building society, with which I have had an account all my life. It is still a mutual. Would it not be better to allow...

That is absolutely right. I agree that the bonus culture must be tackled effectively now. There is even a case for back-dating that approach in relation to directors who got us into this mess and made those worthless ““investments””. An article entitled, ““Finance directors on over £1 million a year””,...

That is absolutely right. I agree that the bonus culture must be tackled effectively now. There is even a case for back-dating that approach in relation to directors who got us into this mess and made those worthless ““investments””. An article entitled, ““Finance directors on over £1 million a year””,...

It is a great pleasure to follow the hon. Member for Leyton and Wanstead (Harry Cohen). He made his case with typical honesty and straightforwardness and I have a lot of sympathy with his remarks. I was in business before I came into the House and, at one time, we...

It is a great pleasure to follow the hon. Member for Leyton and Wanstead (Harry Cohen). He made his case with typical honesty and straightforwardness and I have a lot of sympathy with his remarks. I was in business before I came into the House and, at one time, we...

That is not in my amendment, because my amendment relates to rescued banks. However, we have still given money and support to those banks because they would have failed if there had not been some Government support, in other ways, through the Bank of England. I think that the measure...

That is not in my amendment, because my amendment relates to rescued banks. However, we have still given money and support to those banks because they would have failed if there had not been some Government support, in other ways, through the Bank of England. I think that the measure...

Even if hon. Members do not agree that bonuses are wrong in principle, they must surely agree that they are wrong in practice, because those bonuses were tied to the sale of products that we now find are worthless. Does my hon. Friend agree that unless something is done about...

Even if hon. Members do not agree that bonuses are wrong in principle, they must surely agree that they are wrong in practice, because those bonuses were tied to the sale of products that we now find are worthless. Does my hon. Friend agree that unless something is done about...

I shall address the hon. Gentleman's points in a few moments.

I shall address the hon. Gentleman's points in a few moments.

We have always been clear, throughout the various stages of the Bill, about what the threshold conditions are. The problem that I have with the hon. Gentleman's amendment is that limiting the definition to ““adequate resources”” is too narrow and does not take other circumstances into account. That is why...

We have always been clear, throughout the various stages of the Bill, about what the threshold conditions are. The problem that I have with the hon. Gentleman's amendment is that limiting the definition to ““adequate resources”” is too narrow and does not take other circumstances into account. That is why...

I can see the logic of the hon. Gentleman's opening arguments, because it is normal, when one invests a lot of money in an organisation, to put terms and conditions on to it. I am rather surprised that that has not happened with the £37 billion that we pumped into...

I can see the logic of the hon. Gentleman's opening arguments, because it is normal, when one invests a lot of money in an organisation, to put terms and conditions on to it. I am rather surprised that that has not happened with the £37 billion that we pumped into...

I thank Mr. Speaker for selecting this new clause. A lot has happened in a short period in relation to the banks and the economy, and the situation has moved on rapidly. However, I do not want to fail to deal with the issue of excessive bonuses, which has rightly...

I thank Mr. Speaker for selecting this new clause. A lot has happened in a short period in relation to the banks and the economy, and the situation has moved on rapidly. However, I do not want to fail to deal with the issue of excessive bonuses, which has rightly...

I beg to move, That the clause be read a Second time.

I beg to move, That the clause be read a Second time.

Certainly that is my understanding of how the arrangement would work in normal circumstances, and if there is any further clarification to be made, I will be happy to give it. I would like to reassure the hon. Gentleman that the FSCS will be party to decisions over the choice...

Certainly that is my understanding of how the arrangement would work in normal circumstances, and if there is any further clarification to be made, I will be happy to give it. I would like to reassure the hon. Gentleman that the FSCS will be party to decisions over the choice...

The Minister cites fraud as an example of an area where the threshold conditions could be breached and the FSA could intervene. The threshold conditions are designed to determine whether businesses should become regulated. If he is trying to broaden out the basis on which the FSA should intervene beyond...

The Minister cites fraud as an example of an area where the threshold conditions could be breached and the FSA could intervene. The threshold conditions are designed to determine whether businesses should become regulated. If he is trying to broaden out the basis on which the FSA should intervene beyond...

In new clause 8, the hon. Member for Fareham (Mr. Hoban) seeks to establish a statutory basis for the order in which the authorities must consider the stabilisation options of the special resolution regime. The Government consider it appropriate for a range of options to be available for the resolution...

In new clause 8, the hon. Member for Fareham (Mr. Hoban) seeks to establish a statutory basis for the order in which the authorities must consider the stabilisation options of the special resolution regime. The Government consider it appropriate for a range of options to be available for the resolution...

Who will decide how to deal with the depositors in a failed bank? In the Bradford & Bingley case, it was decided that the best solution was to transfer them across to Banco Santander/Abbey. In the Icelandic banks situation, some depositors were transferred across to ING Direct, and others were...

Who will decide how to deal with the depositors in a failed bank? In the Bradford & Bingley case, it was decided that the best solution was to transfer them across to Banco Santander/Abbey. In the Icelandic banks situation, some depositors were transferred across to ING Direct, and others were...

We explained at length in Committee how the system works in terms of the responsibilities of the authorities in the tripartite arrangement. The FSA takes lead responsibility in determining whether the threshold conditions have been met, and the Bank of England is the lead authority in determining which of the...

We explained at length in Committee how the system works in terms of the responsibilities of the authorities in the tripartite arrangement. The FSA takes lead responsibility in determining whether the threshold conditions have been met, and the Bank of England is the lead authority in determining which of the...

To be absolutely clear, is the Minister saying that the Bank of England takes the lead in deciding whether the account should be transferred to another bank or should be subject to the FSCS compensation arrangements?

To be absolutely clear, is the Minister saying that the Bank of England takes the lead in deciding whether the account should be transferred to another bank or should be subject to the FSCS compensation arrangements?