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Banking

Volume 710: debated on Monday 11 May 2009

Statement

My right honourable friend the Chancellor of the Exchequer (Alistair Darling) has today made the following Written Ministerial Statement.

As indicated in both the Pre-Budget Report and the Budget, the Government are conducting a detailed review of the arrangements surrounding the insolvency of investment banks. Today I am publishing the Government’s first consultation document on this issue. This document sets out the Government’s preliminary thinking on possible market, regulatory or legislative changes that may be considered in respect of future insolvencies in the investment banking sector. The paper covers issues relating to trading, clearing and settlement, to client assets and moneys, and to the resolution of investment firms in difficulty. Copies of the document, which is entitled Developing Effective Resolution Arrangements for Investment Banks, have been deposited in the Libraries of both Houses and will be available on the HM Treasury website.