John Bercow
Main Page: John Bercow (Speaker - Buckingham)Department Debates - View all John Bercow's debates with the HM Treasury
(10 years, 7 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Mr Jack Straw (Blackburn) (Lab)
I wish to express my gratitude to the hon. Gentleman for his leadership on this issue. Hon. Members on both sides of the House are very grateful. Like so many colleagues, I have a firm in my constituency—it does not want to be named—that has been in this situation. I was able to get the redress payment paid and was about to get compensation in hand, when the FCA intervened to say, “Oh well, the 8% simple interest paid for the redress payment is sufficient compensation for the consequential losses.” Does he accept what must be blindingly obvious—that no bank seeking redress for a loss that it had unfairly suffered and then seeking compensation for consequential losses would dream of ever seeing the two rolled up together? What is sauce for the goose must be sauce for the gander.
Mr Speaker
We all look forward to the publication of the right hon. Gentleman’s thesis on this subject, but in fact I think we have just heard it.
Guto Bebb
I accept the right hon. Gentleman’s point. This is clearly an important step forward, however, and we should take comfort from the fact that this place can influence the behaviour of the banking sector. I will be discussing consequential losses later in my speech.
It is fair to say that the 91% finding in the pilot scheme has been replicated in the work done within the redress scheme. The figures released by the FCA in August and September on the individual performance of banks—something for which the all-party group called—have clearly shown that 93% of cases in the redress scheme involved actual mis-selling. So again we have proved that there is an issue that needs to be dealt with.
Mr Speaker
Order. More than 20 Members are seeking to catch my eye. We have also to hear, very properly, from the Minister and the shadow Minister, and I envisage the debate finishing at approximately 2.30 pm, at which point we shall need to move to the next debate. In recognition of all those considerations, I am imposing a limit of six minutes on Back-Bench speeches, with immediate effect.