Banking: Regulation

Lord Lawson of Blaby Excerpts

Monday 10th December 2012 Lords Chamber

[Lord Newby]

Yes, my Lords, I completely agree. One of the things that the banking crisis has demonstrated is that the banks understand the international situation better than Governments understand it. One of the things that we have been trying to do, both through the EU and internationally, is to close that gap. No doubt the noble Lord has seen the article in the FT today by Paul Tucker from the Bank of England and Martin Gruenberg, the chair of the Federal Deposit Insurance Corporation in the States, which looks specifically at how you deal with resolving problems concerning the largest systemically important banks in the world.

[Lord Lawson of Blaby]

My Lords, while the noble Lord, Lord Peston, is undoubtedly correct that international co-operation is desirable, will the Minister give an undertaking that we shall not hold back on what needs to be done simply because international co-operation may not be forthcoming or, even if it is, it may not be adequate?

[Lord Newby]

My Lords, I absolutely agree. That is why we have been in the forefront of bringing forward plans under which banking problems can be resolved and why, under the Banking Reform Bill, we are looking at having a ring-fence around retail banks so that we do not have the problems that we have had in the past. This will go ahead, whatever happens internationally. I hope very much that there will be international action, but action that is based very much on the British model and with British leadership.