Lord Sherbourne of Didsbury
Main Page: Lord Sherbourne of Didsbury (Conservative - Life peer)
Lord Ashton of Hyde
My Lords, the Government have legislated to implement the Vickers ring-fencing recommendations through the banking reform Act, and it is now up to regulators to finalise those detailed rules. The Government remain committed to the implementation of the ring-fencing regime by 2019. The ring-fencing of retail banking services will help to make sure that taxpayers are not on the hook again if the bank fails in future.
Lord Sherbourne of Didsbury (Con)
My Lords, perhaps my noble friend can enlighten me. The noble Lord, Lord Davies, said that lending to sub-prime borrowers happened before the last Labour Government. Does my noble friend know why the last Labour Government did not then act? Was it not because the banking regime under that Government was extremely weak? Has it not been tightened very effectively in recent years?
Lord Ashton of Hyde
Of course, the banking regime has been tightened, as we all know. I mentioned a few minutes ago criminal penalties for rogue traders and also the officers of banks. It is true that when we look at the previous regime, there is no doubt that we are making progress in that respect. As I said before, it is important that the culture is there in the banks. I believe that that is better than it was.