Royal Bank of Scotland

Jonathan Edwards Excerpts

Thursday 13th June 2013 Commons Chamber

[Sajid Javid]

My hon. Friend raises a good point, and it is actually quite easy to find out—although I do not think the previous Government wanted to advertise it, and nor do I think the current Opposition want us to continue highlighting it—that when RBS was bailed out, the then Government overpaid by over £12 billion and wrote that off at that time. They did the same in the interventions in Lloyds bank and Northern Rock, and, as we know, all this was a direct result of the previous Government’s failure to regulate our banking and financial system properly.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

The Minister referred in his statement to the regulatory role of the new Prudential Regulation Authority. What mechanisms have the Government and the Bank of England put in place to ensure that the PRA does not suffer from the “revolving door” disease, which afflicted its predecessor, the FSA?

[Sajid Javid]

The hon. Gentleman raises a good point. That was a problem at the previous regulator, the FSA. When the PRA was set up, its head, Andrew Bailey, prioritised the issue, making sure that he hires the best people and that they are rewarded accordingly, to make sure they can do a good job in looking after the interests of the taxpayer.