Banking Reform

Thomas Docherty Excerpts

Thursday 14th June 2012 Commons Chamber

[Mr Hoban]

The hon. Lady makes an important point about getting the balance right, but let us not forget that the banking crisis cost this economy £140 billion between 2007 and 2009. An unstable banking sector costs the economy dear: it costs jobs, it costs tax revenues and it costs families. The important thing is to ensure that we get the banking system right, so that it is stable and promotes growth, rather than allowing banks to let loose, grow their balance sheets unconstrained and take on risks that they do not understand, which is what happened in the lead-up to the financial crisis, when the shadow Chancellor’s system of regulation was in full swing.

[Thomas Docherty (Dunfermline and West Fife) (Lab)]

Where is the Chancellor, and at what point did he decide not to make the statement himself?

[Mr Hoban]

It has always been the case that I would make the statement today. This may come as news to the shadow Chancellor—it may be different from his experience when he was City Minister—but the Treasury is a team. We have worked together on these reforms, and it was always the intention that I would make today’s statement. The shadow Chancellor should not believe what he reads on Twitter.