The current financial crises are global problems and require international, as well as domestic, solutions. The UK Authorities have been heavily involved in work at both EU and international level to enhance the stability and resilience of the global financial system.
The Government will continue to work in close co-operation with international partners.
(2) what proportion of the capital provided from UK Government funds via UK Financial Investments Ltd to Lloyds HBOS has been used to provide capital to its overseas subsidiaries;
(3) what proportion of the capital provided from UK Government funds via UK Financial Investments Ltd to Royal Bank of Scotland has been used to provide capital to its overseas subsidiaries.
Under the recapitalisation scheme announced on 8 October 2008, the Government have invested £19.97 billion in Royal Bank of Scotland Group plc (RBS) and £16.96 billion in Lloyds TSB Group plc (Lloyds) and Halifax Bank of Scotland plc (HBOS). The recapitalisation agreements are between the Treasury and RBS, Lloyds and HBOS respectively.
It is a matter for each group to deploy capital where needed to support their businesses.
It is a matter for each of these companies’ management to release specific business updates or provide any required disclosures in their audited annual report and accounts.
The Government’s investments are managed on a commercial basis by UK Financial Investments Ltd. (UKFI), a company which is wholly owned by the Government. Its overarching objectives are to protect and create value for the taxpayer as a shareholder, with due regard to financial stability and acting in a way that promotes competition.