Barry Sheerman
Main Page: Barry Sheerman (Labour (Co-op) - Huddersfield)Department Debates - View all Barry Sheerman's debates with the HM Treasury
(11 years, 6 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Sajid Javid
As always, my hon. Friend has made a very good point. I agree with him that Stephen Hester has done a commendable job. Five years is a perfectly normal period for anyone to remain as chief executive of a major corporation, and that sentiment was reflected in Stephen Hester’s own comments since the announcement of his departure.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
Will the Minister answer one really important question about this very major change? Two banks ran into difficulties, RBS and HBOS—many of my constituents worked for HBOS—but those two banks were not run into the buffers by politicians; they were run into ruin by the group of unscrupulous, immoral bankers who ran the companies, and it was not politicians but auditors and those in the accountancy profession who never flagged that up. Let us get the record straight. Let us be honest with the British people. Let us also be honest and say “You have just sacked this banker for your own purposes.”
Sajid Javid
The hon. Gentleman is right about being honest, of course, and in the interests of honesty, it is important to point something out. Since he seems to have suggested that the previous Government played no role in the failure of RBS and that it was just a failure of poor banking, let me remind him of what the then shadow Chancellor, my right hon. Friend the Member for Hitchin and Harpenden (Mr Lilley), said in 1997 when the then Government planned to change the regulatory system. He said:
“The process of setting up the FSA may cause regulators to take their eye off the ball, while spivs and crooks have a field day.”—[Official Report, 11 November 1997; Vol. 300, c. 732.]