Skip to main content

Banking: Asset Protection Scheme

Volume 712: debated on Monday 20 July 2009

Question

Asked by

To ask Her Majesty's Government whether HM Treasury has conducted due diligence with regard to the former HBOS loans being entered into the asset protection scheme; and, if so, (a) whether any loans have been found to have been issued contrary to HBOS's own internal procedures, (b) whether they have identified any loans where it does not appear that the entire notional sum of the loan went to the original customer, and (c) whether HM Treasury has been informed of any concerns about misappropriation of funds or other such irregularities. [HL4844]

Those former HBOS assets proposed for inclusion in the APS are subject to due diligence by the Treasury and its advisers. This work is focused on estimating the expected losses on those assets. Further details of the results of that due diligence will be provided after it has been completed and the final terms of the participation agreed with Lloyds Banking Group, subject to restrictions on the disclosure of commercially confidential information.