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Banks: Finance

Volume 490: debated on Monday 30 March 2009

To ask the Chancellor of the Exchequer when the Financial Services Authority first informed his Department of potential problems arising from the over exposure of British banks to the house lending market. (259864)

As the memorandum of understanding between HM Treasury, the Bank of England and the FSA sets out, the tripartite authorities have regular meetings and discussions to work together towards the common objective of financial stability in the UK.

To ask the Chancellor of the Exchequer pursuant to the answer of 9 March 2009, Official Report, column 100W, on banks, what progress has been made in liaison between his Department, UK Financial Investments (UKFI) and the boards of banks of which UKFI is a major shareholder on pension arrangements for directors of these banks. (265729)

[holding answer 23 March 2009]: The Treasury and UK Financial Investments Ltd. (UKFI) continue to liaise with the board of the banks of which they are major shareholders on remuneration policy. This includes work to ensure that remuneration policies are in line with the Government's principles on remuneration, including no rewards for failure. Directors' remuneration arrangements—including pensions arrangements as appropriate—are disclosed in the banks' annual report and accounts.

To ask the Chancellor of the Exchequer what recent assessment his Department has made of investments in (a) oil sands and shale oil, (b) conventional oil projects, (c) gas projects and (d) coal-fired power stations by those UK financial institutions that are now majority owned by the Government. (265833)

[holding answer 23 March 2009]: 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.