Banking (Responsibility and Reform)
Debate between Marcus Jones and Margot James(12 years, 9 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Mr Jones
My hon. Friend makes a very important point and I hope that some of my comments later will enthuse her about my stance on that issue.
Not many people would disagree that we need to move from irresponsible banking practice to responsible but successful banking, from poor Government regulation to effective regulation, from bailing out the banks to getting taxpayers’ money back, from the state ownership of banks to putting them back into private ownership, and from the state guaranteeing banks to ensuring that they stand on their own two feet and are not too big to fail. We need to draw some important distinctions when we consider such matters. There is a distinction between taxpayer-owned banks and private banks and we also need to take into account the taxpayer guarantee. When we consider irresponsible bankers—who now seem to be epitomised by Fred Goodwin, who should not be singled out but seems to be taking the brunt of the blame for all the irresponsibility in the banking industry—there should be a distinction between their type of banking and the more responsible banking that many are trying to promote.
One person who was brought in to try to promote more responsible banking and to get RBS back on its feet was Stephen Hester. He came in and took on a job, and although we might all agree or disagree with the definition of the success that he was tasked with bringing about, the fact is that he was given that definition—I think by the Labour party, when it was in government—and now Labour seems to want to move the goalposts and change the definition of success or failure within his remit.
Margot James
Despite the fact that the opening speech from the Opposition spokesman was couched in such reasonable terms, did my hon. Friend see the shadow Chief Secretary to the Treasury on “Newsnight”, remarking that Stephen Hester’s bonus was a reward for failure? Does my hon. Friend not agree that that is a gross distortion of the reality? He will agree, I have no doubt, that Stephen Hester has brought many more benefits to RBS.