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...

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...

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...

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?

The hon. Gentleman makes a valid point. The search for a potential private sector solution to Northern Rock was a long and drawn-out process, and the Government reached their conclusions on the success of that. I am not saying that rescuing a failed bank means hawking it round the market...

The hon. Gentleman makes a valid point. The search for a potential private sector solution to Northern Rock was a long and drawn-out process, and the Government reached their conclusions on the success of that. I am not saying that rescuing a failed bank means hawking it round the market...

That is absolutely right. It might be possible to hold a bank in its entirety in the bridge bank mechanism, with a view to managing it to be sold as a whole bank. There is no sense that considering one option excludes another. I will not ask to put our...

That is absolutely right. It might be possible to hold a bank in its entirety in the bridge bank mechanism, with a view to managing it to be sold as a whole bank. There is no sense that considering one option excludes another. I will not ask to put our...

Amendment No. 14 reflects that point by stating ““may require”” rather than ““must””. Nevertheless, it is important that, on Report, the Economic Secretary has put on the record the principle that, where appropriate, either the private sector purchaser or, in some cases, the insolvent estate, may be required to make...

Amendment No. 14 reflects that point by stating ““may require”” rather than ““must””. Nevertheless, it is important that, on Report, the Economic Secretary has put on the record the principle that, where appropriate, either the private sector purchaser or, in some cases, the insolvent estate, may be required to make...

I shall deal first with the new clauses and amendments proposed by the Economic Secretary. He is right to identify the importance of the continuity of services and facilities in the Bill, which goes back to comments made on the last group of amendments that one of the ways in...

I shall deal first with the new clauses and amendments proposed by the Economic Secretary. He is right to identify the importance of the continuity of services and facilities in the Bill, which goes back to comments made on the last group of amendments that one of the ways in...

I am pleased that so many people are interested in the debate on new clause 7, which would add a further responsibility to a financial stability committee. The Bill establishes for the first time a committee of the Bank of England, which will be responsible for maintaining—

I am pleased that so many people are interested in the debate on new clause 7, which would add a further responsibility to a financial stability committee. The Bill establishes for the first time a committee of the Bank of England, which will be responsible for maintaining—

Thank you, Mr. Deputy Speaker. As I was saying, the Bill sets up the financial stability committee of the Bank of England, a sub-committee of the court of directors. Its role is to contribute towards protecting and enhancing the stability of the financial systems of the UK—described in the Bill...

Thank you, Mr. Deputy Speaker. As I was saying, the Bill sets up the financial stability committee of the Bank of England, a sub-committee of the court of directors. Its role is to contribute towards protecting and enhancing the stability of the financial systems of the UK—described in the Bill...

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

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

I did not say that.

I did not say that.

One of the objectives of that regime is the protection of depositors. In justifying any need for a pre-funding scheme, the report would have to address whether such a scheme would help to protect depositors. That is the link between what the report should set out and the regime's objectives.

One of the objectives of that regime is the protection of depositors. In justifying any need for a pre-funding scheme, the report would have to address whether such a scheme would help to protect depositors. That is the link between what the report should set out and the regime's objectives.

The hon. Gentleman makes an important point. In the wider debate on the pre-funded scheme, the Building Societies Association has highlighted instances in which building societies might be called on to contribute to resolutions. It says that the building societies have swallowed their own smoke, to use a phrase beloved...

The hon. Gentleman makes an important point. In the wider debate on the pre-funded scheme, the Building Societies Association has highlighted instances in which building societies might be called on to contribute to resolutions. It says that the building societies have swallowed their own smoke, to use a phrase beloved...

Let me deal first the Government's new clause and amendments. I am sure that my hon. Friend the Member for South-West Hertfordshire (Mr. Gauke) will be heartened to hear that the Government took note of his comments, in Committee, about the appropriate place for the institutions that have been mentioned....

Let me deal first the Government's new clause and amendments. I am sure that my hon. Friend the Member for South-West Hertfordshire (Mr. Gauke) will be heartened to hear that the Government took note of his comments, in Committee, about the appropriate place for the institutions that have been mentioned....