asked the Chancellor of the Exchequer whether he has received a copy of the report commissioned by the Bank of England from Price, Waterhouse, into the dealings of Johnson Matthey Bankers prior to its collapse.
My right hon. Friend is aware of the Price, Waterhouse investigation and that an interim report has been made. He has asked that the committee which has been established to review banking supervisory arrangements in the light of the collapse of JMB should take full account of the results of the investigation.
asked the Chancellor of the Exchequer whether the enquiries by the Bank of England into Johnson Matthey Bankers have revealed unsecured lending.
Yes. Unsecured lending is not in itself imprudent and is not uncommon.
asked the Chancellor of the Exchequer whether the funds paid by the Bank of England in connection with the collapse of Johnson Matthey Bankers are shown in the Government's public spending figures.
No. The resources involved are those of the Bank of England's banking department which, in line with national accounts practice, is regarded as being in the monetary sector for accounting purposes.
asked the Chancellor of the Exchequer when the banking supervision department of the Bank of England first learnt that Johnson Matthey Bankers was insolvent.
I understand that the Bank of England first learned of the seriousness of the difficulties which threatened JMB's insolvency shortly before the rescue operation was mounted.
asked the Chancellor of the Exchequer what action the Bank of England took prior to the collapse of Johnson Matthey Bankers in pursuance of its duty to supervise the banking system.
I shall let the hon. Member have a reply as soon as possible.
asked the Chancellor of the Exchequer whether he was informed, prior to the takeover of Johnson Matthey Bankers by the Bank of England on 1 October 1984, that the bank intended to take such a course.
As my right hon. Friend said in his statement to the House on 17 December, he was notified shortly before the rescue was announced of the action the Governor intended to take.