UK Parliament / Open data

Northern Rock and Banking Reform

Estimates day on Monday, 10 March 2008, in the House of Commons, led by Lord McFall of Alcluith. The answering member was Jane Kennedy.
Northern Rock and Banking reform. Supplementary estimates 2007-08. Second estimates day (part 1). Question deferred. Resolved (c115-7). (Relevant documents: Treasury Select committee report HC 56 2007-08 and Revised spring supplementary estimates for central government for 2007-08 - HC 366)

About these Parliamentary proceedings

Reference

473 c21-84 

Session

2007-08

Department

Treasury

Chamber / Committee

House of Commons chamber

Related items

The run on the Rock.Treasury Select Committee fifth report in 2 volumes with proceedings, evidence (HC 999 i-iv 2006-07 not printed separately) and appendices.
Thursday, 24 January 2008
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Supply estimates 2007-08: revised spring supplementary estimates for central government for 2007-08.
Monday, 25 February 2008
House of Commons papers
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Proceeding contributions

George Mudie | 473 c54 (Link to this contribution) Greed.
Sally Keeble | 473 c54 (Link to this contribution) I have listened carefully to the right hon. Gentleman's interesting speech. Does he accept that a nu...

Show all contributions (95)
Lord Lilley | 473 c54-5 (Link to this contribution) The hon. Lady perceptively raises an issue that I am about to discuss. If she does not mind, I shall...
George Mudie | 473 c55-6 (Link to this contribution) I, too, congratulate both the Chair and the members of the Treasury Committee. We know that my right...
Lord McFall of Alcluith | 473 c56 (Link to this contribution) Remarks such as that from the credit card companies can be dangerous. They had come before us to dis...
George Mudie | 473 c50 (Link to this contribution) Will my hon. Friend comment on the Bank of England's behaviour in finding what every hon. Member in ...
Adrian Bailey | 473 c49-50 (Link to this contribution) I well remember the Bill; indeed, it was proposed by an Opposition Member, and I supported it in the...
Lord Lilley | 473 c52-4 (Link to this contribution) I pay tribute to the hon. Member for West Bromwich, West (Mr. Bailey). He made a powerful point, to ...
Adrian Bailey | 473 c50-2 (Link to this contribution) My hon. Friend asks an interesting question. My understanding, bearing in mind that I was not on the...
Mark Field | 473 c47 (Link to this contribution) The hon. Member for West Bromwich, West (Mr. Bailey) must be proud of his football team's success at...
Philip Dunne | 473 c47 (Link to this contribution) I am grateful to my hon. Friend for allowing me to offer him a suggestion. The decision not to advan...
Mark Field | 473 c47 (Link to this contribution) There is some fairness in that, and I discussed systemic risk earlier. The agenda of a 24/7 media ma...
Adrian Bailey | 473 c47 (Link to this contribution) What decisions by the FSA, the Treasury or the Bank of England were influenced by political consider...
Mark Hoban | 473 c49 (Link to this contribution) Does the hon. Gentleman not remember a Bill that received Royal Assent last year at the behest of bu...
Mark Field | 473 c47-8 (Link to this contribution) That is fair to say, about one of the Chancellor's many minor decisions. The ““temporary”” national...
Adrian Bailey | 473 c48-9 (Link to this contribution) I, too, congratulate Treasury Committee on its work—as I am not a member of the Committee, perhaps I...
George Mudie | 473 c47 (Link to this contribution) Is not that a bit unfair? The institution was not simply a northern bank but a bank with queues outs...
Mark Field | 473 c46 (Link to this contribution) I shall try to make this a solo rather than a duet. It is fair to say that, when the crisis emerged...
Charles Clarke | 473 c41-4 (Link to this contribution) I am delighted to contribute to this discussion as the Member of Parliament for Norwich, South, wher...
Mark Field | 473 c44-6 (Link to this contribution) This has been a very interesting debate. My hon. Friend the Member for Sevenoaks (Mr. Fallon) was ab...
Jane Kennedy | 473 c46 (Link to this contribution) I know that the hon. Gentleman genuinely and firmly holds his view about politically inspired decisi...
Frank Dobson | 473 c46 (Link to this contribution) And whether they were supported by the Tory party. [Laughter.]
John Redwood | 473 c40 (Link to this contribution) If the problem of compensation can be resolved or the answer improved, one of the options to look at...
Vincent Cable | 473 c40-1 (Link to this contribution) We are talking about slightly different things. Is not the purpose of deposit protection to prevent ...
Frank Dobson | 473 c41 (Link to this contribution) I understand the hon. Gentleman's point, but it assumes that if banks were allowed to go broke, subj...
Vincent Cable | 473 c41 (Link to this contribution) If some of the banks were to go bust, lessons would be learned. Historically, banks, like any other ...
Greg Hands | 473 c40 (Link to this contribution) In the States, the movement is more in the opposite direction. As banking consolidation happens in t...
Vincent Cable | 473 c38-9 (Link to this contribution) It may well do so, and as we now own Northern Rock, it may be protecting the taxpayer by taking that...
Greg Hands | 473 c39 (Link to this contribution) The hon. Gentleman referred to the US style of deposit insurance enacted by the Federal Deposit Insu...
Vincent Cable | 473 c37-8 (Link to this contribution) That is a helpful correction. However, the point in answer to both the right hon. Member for Wokingh...
Vincent Cable | 473 c37 (Link to this contribution) The hon. Gentleman makes exactly my point, but he has developed it in a very helpful way.
John Redwood | 473 c37 (Link to this contribution) The way that some might look at it is that what matters is the person's ability to pay the interest ...
Vincent Cable | 473 c36-7 (Link to this contribution) I start by congratulating the Chairman of the Select Committee, the right hon. Member for West Dunba...
Lord Beamish | 473 c37 (Link to this contribution) Is it not correct that there are two separate items in the mortgage book? There are traditional long...
Vincent Cable | 473 c39-40 (Link to this contribution) If the banking industry in this country develops in the way that it could develop and as some of us ...
Frank Dobson | 473 c34-6 (Link to this contribution) The hon. Gentleman has not changed the terms of the discussion one jot by that statement. The banks ...
Jane Kennedy | 473 c81-4 (Link to this contribution) I could have made a point about that in response to the hon. Member for Hammersmith and Fulham (Mr. ...
Philip Dunne | 473 c81 (Link to this contribution) The Financial Secretary referred earlier to the discussions with the EU competition authorities. Pre...
Mark Hoban | 473 c75-80 (Link to this contribution) The debate has been conducted in a measured and reasonable tone. I congratulate my hon. Friends the ...
Philip Dunne | 473 c70-5 (Link to this contribution) I am pleased to be able to contribute to the tail end of this debate. The Treasury Committee report...
Jane Kennedy | 473 c81 (Link to this contribution) I feel a little bit like my hon. Friend the Member for Leeds, East (Mr. Mudie), who feared that he m...
Greg Hands | 473 c81 (Link to this contribution) May I ask the Financial Secretary a quick question about Northern Rock Guernsey? Its prospectus on i...
Jane Kennedy | 473 c81 (Link to this contribution) I acknowledged the expertise that the hon. Gentleman brings to the debate. [Interruption.] If he wil...
Sally Keeble | 473 c65-6 (Link to this contribution) The hon. Gentleman has set out the defence for the credit rating agencies. The Committee heard that ...
Greg Hands | 473 c66-70 (Link to this contribution) I do not want to talk much about banking reform. Instead, I want to have an urgent look at what has ...
Sally Keeble | 473 c66 (Link to this contribution) Yes. There has been a lot of discussion about the complexity of the products and whether people unde...
George Mudie | 473 c60-1 (Link to this contribution) The hon. Gentleman puts his finger on the problem. I want to say just two more things. The first is...
Viscount Thurso | 473 c61-3 (Link to this contribution) May I begin by echoing comments made in the first two contributions to the debate? The first contrib...
Sally Keeble | 473 c64-5 (Link to this contribution) I am grateful for the chance to take part in a debate that has been thoughtful and constructive. As ...
Greg Hands | 473 c65 (Link to this contribution) That is a common misconception about credit rating agencies. The ratings are best viewed on a relati...
George Mudie | 473 c59-60 (Link to this contribution) I know; I understand. I do not mind people disagreeing if they put another theory into the frame. He...
Colin Breed | 473 c60 (Link to this contribution) Does the hon. Gentleman agree that regulation is no substitute for responsibility? However much we w...
George Mudie | 473 c59 (Link to this contribution) That is an interesting question. It was remiss of me not to mention the hon. Gentleman, as he raised...
Philip Dunne | 473 c59 (Link to this contribution) I think that the hon. Gentleman is at the crux of what started to go wrong with this chapter of erro...
Viscount Thurso | 473 c58 (Link to this contribution) It is always a pleasure to help out the hon. Gentleman. Does he agree that his catalogue of historic...
George Mudie | 473 c58 (Link to this contribution) I welcome the hon. Gentleman intervening, because I need to work out where I am in my speech.
George Mudie | 473 c57-8 (Link to this contribution) I see that he knows it. The updated edition has a wonderful long chapter on banking difficulties. Ta...
George Mudie | 473 c56-7 (Link to this contribution) I totally agree. I thought that my right hon. Friend was intervening to say that I was never bad tem...
Greg Hands | 473 c34 (Link to this contribution) I have been listening to the right hon. Gentleman's tale of woe. May I make a few corrections? First...
Frank Dobson | 473 c33-4 (Link to this contribution) I entirely agree, and I think the hon. Member for Sevenoaks (Mr. Fallon) made the same point in slig...
Michael Fallon | 473 c31-2 (Link to this contribution) They certainly will, but one starts from a position that includes the very large, major UK banks and...
Andrew Love | 473 c31 (Link to this contribution) Is not the problem with defining which banks can and cannot fail that we are giving an implicit Gove...
Michael Fallon | 473 c31 (Link to this contribution) That is certainly one way of defining it. Very big UK banks may be in the system which, for other cl...
Viscount Thurso | 473 c31 (Link to this contribution) I am following the hon. Gentleman's argument closely. Does he agree that the critical factor is the ...
George Mudie | 473 c33 (Link to this contribution) My right hon. Friend assigns motives to the banks, but he has missed out one of them: greed. Does he...
Frank Dobson | 473 c33 (Link to this contribution) They took huge commissions and in the case of some of the American banks when they lost, let us say,...
Lord Beamish | 473 c33 (Link to this contribution) On top of that, does my right hon. Friend agree that it is scandalous that most of the people who we...
Frank Dobson | 473 c32-3 (Link to this contribution) It is important for us not to confine our thoughts about the future regulation of the British bankin...
Adrian Bailey | 473 c25 (Link to this contribution) I have listened carefully to what my right hon. Friend is saying, and having read his report, I unde...
Lord McFall of Alcluith | 473 c22 (Link to this contribution) With regard to the executives, I have mentioned that the business strategy was reckless. The non-exe...
Lord McFall of Alcluith | 473 c21 (Link to this contribution) It is a pleasure to open today's debate on Northern Rock and banking reform. The Treasury Committee ...
Lord McFall of Alcluith | 473 c24-5 (Link to this contribution) I could devise a great headline for that intervention along the lines of, ““State Support Essential ...
Mark Field | 473 c24 (Link to this contribution) The right hon. Gentleman has uttered the usual incantation about not privatising the risks and ensur...
Lord Beith | 473 c22 (Link to this contribution) Many of us are receiving representations from former Northern Rock shareholders who say that the Fin...
John Redwood | 473 c27-8 (Link to this contribution) When the right hon. Gentleman's Committee looked into the matter, did it come to any conclusion abou...
Lord McFall of Alcluith | 473 c27 (Link to this contribution) I agree with the hon. Gentleman entirely. Again, he is a member of the Committee and contributed gre...
Michael Fallon | 473 c29-31 (Link to this contribution) I will not follow the Chairman of the Treasury Committee, the right hon. Member for West Dunbartonsh...
Lord McFall of Alcluith | 473 c28-9 (Link to this contribution) That certainly would help the debate, but the Treasury Committee does not have inside information. A...
Colin Breed | 473 c26 (Link to this contribution) Of course, banks are going to be solvent. Their problem, because of liquidity, is making their asset...
Lord McFall of Alcluith | 473 c25-6 (Link to this contribution) The prompt corrective action mechanisms should take care of that. I will not follow my hon. Friend d...
Viscount Thurso | 473 c27 (Link to this contribution) Does the right hon. Gentleman agree that one of the main lacunae, which he has just identified, was ...
Lord McFall of Alcluith | 473 c26-7 (Link to this contribution) Given that the hon. Gentleman is an esteemed member of my Committee, I must agree with him. We took ...
Lord Beamish | 473 c25 (Link to this contribution) Does my right hon. Friend agree that there should be some control or regulation over non-executive d...
Lord McFall of Alcluith | 473 c25 (Link to this contribution) That is still to be worked out. We are looking at the banking sector at the moment, but the Governme...
Lord Lilley | 473 c54 (Link to this contribution) No, it was not because of greed. It was because it was necessary that they be encouraged to do so. T...
Vincent Cable | 473 c40 (Link to this contribution) No doubt we could continue this conversation all afternoon. The one conclusion that we drew from the...
Jane Kennedy | 473 c80-1 (Link to this contribution) It is pleasure to follow the hon. Member for Fareham (Mr. Hoban), and I agree with his opening comme...
Andrew Miller | 473 c22 (Link to this contribution) Did my right hon. Friend find any evidence on how the executives reported their actions to the share...
Frank Dobson | 473 c66 (Link to this contribution) In view of what my hon. Friend has rightly said about the recognition by some of the financial colum...
Lord McFall of Alcluith | 473 c22-4 (Link to this contribution) I do not want to get into pronouncing on the shareholder issue; today, I am focusing on our Committe...
Mark Field | 473 c38 (Link to this contribution) I agree with much of the hon. Gentleman's careful analysis. He made the point that ultimately we do ...
George Mudie | 473 c58 (Link to this contribution) As always, the articulate hon. Gentleman is spot on. He is a valuable member of the Treasury Committ...

Subjects

Banks
Financial institutions
Nationalisation
Regulation
Northern Rock

Link

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