Independent Banking Commission Report

George Mudie Excerpts

Monday 12th September 2011 Commons Chamber

[Mr Osborne]

I hesitate to read out bank share prices, as they might have changed in the 45 minutes I have been on my feet The reaction from the banks today has not dramatically affected the prices of UK bank shares. There has not been a dramatic fall, nor indeed a dramatic rise. They have remained broadly flat—unlike those of French and German banks, which are very substantially down today. What that also suggests is that John Vickers—and, I would argue, the Government—did a good job in trying to price the proposals into the share price by giving clear signposts about the way in which we were going, so that it did not come as a big surprise. I completely agree with my hon. Friend about the Financial Conduct Authority. As a member of the Select Committee, she can look at some of the Vickers’ proposals potentially to change the FCA’s remit. We need to consider that, as do Members who are looking at the Bill.

[Mr George Mudie (Leeds East) (Lab)]

On ring-fencing, Vickers suggests 2019 as a back-stop, but page 151 of the report makes it clear that “efforts” should be

“made to complete it sooner.”

Does the Chancellor accept that recommendation from Vickers and, if not, why not?

[Mr Osborne]

I, too, used the phrase “back-stop” in the statement. Vickers recommends that the changes be completed by 2019, but also recommended in his press conference that they be legislated for in this Parliament and that some of the changes might take place before that. We need to consider all these issues, but I think we need to pay attention to the 2019 date that Vickers sets out in his report.