This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/scotland/7890491.stm
The article has changed 4 times. There is an RSS feed of changes available.
Version 0 | Version 1 |
---|---|
Call for legal inquiry into banks | Call for legal inquiry into banks |
(10 minutes later) | |
The Scottish businessman who led a bid for HBOS before it was merged with Lloyds TSB has called for a legal inquiry into the banking system. | The Scottish businessman who led a bid for HBOS before it was merged with Lloyds TSB has called for a legal inquiry into the banking system. |
Jim Spowart said recent events raised serious questions about the banking sector, particularly in Scotland. | Jim Spowart said recent events raised serious questions about the banking sector, particularly in Scotland. |
It comes after the chancellor moved to dampen speculation that the Lloyds Banking Group could be nationalised. | It comes after the chancellor moved to dampen speculation that the Lloyds Banking Group could be nationalised. |
The organisation has said that it expects its subsidiary to make record losses of nearly £11bn. | The organisation has said that it expects its subsidiary to make record losses of nearly £11bn. |
Shares in Lloyds Banking Group, which is 43% owned by the taxpayer, closed down 32.5% at the of last week. | Shares in Lloyds Banking Group, which is 43% owned by the taxpayer, closed down 32.5% at the of last week. |
I do think we really need now, given all the revelations of last week, to call for something like a judicial inquiry into what's actually going on Jim SpowartBusinessman Chancellor Alistair Darling said that allowing HBOS to collapse would have had knock-on effects for all of Britain's banks. | |
The chancellor refused to rule out nationalisation of Lloyds but insisted a range of options remained open to help the banking sector. | The chancellor refused to rule out nationalisation of Lloyds but insisted a range of options remained open to help the banking sector. |
He later moved to stress that "properly regulated and supervised" banks were best run on a commercial basis. | He later moved to stress that "properly regulated and supervised" banks were best run on a commercial basis. |
Mr Spowart, who set up HBOS's Intelligent Finance online division, told BBC Scotland's Politics Show shareholders should still be worried about nationalisation. | Mr Spowart, who set up HBOS's Intelligent Finance online division, told BBC Scotland's Politics Show shareholders should still be worried about nationalisation. |
But he said: "If I was a shareholder I would be shocked by the news coming out in the last few days that [nationalisation] is now a possibility and very much on the cards. | |
"I do think we really need now, given all the revelations of last week, to call for something like a judicial inquiry into what's actually going on with our banks, particularly in Scotland." | "I do think we really need now, given all the revelations of last week, to call for something like a judicial inquiry into what's actually going on with our banks, particularly in Scotland." |
Mr Spowart said he wanted to see a "forensic examination" of how HBOS was managed. | Mr Spowart said he wanted to see a "forensic examination" of how HBOS was managed. |
Alistair Darling comments on the HBOS losses | Alistair Darling comments on the HBOS losses |
Independent MSP Margo Macdonald has also said she fears the superbank created by the Lloyds TSB/HBoS merger is too big. | Independent MSP Margo Macdonald has also said she fears the superbank created by the Lloyds TSB/HBoS merger is too big. |
Sir Peter Burt was chief executive of the Bank of Scotland when it merged with the Halifax and launched a bid to prevent the Lloyds merger. | Sir Peter Burt was chief executive of the Bank of Scotland when it merged with the Halifax and launched a bid to prevent the Lloyds merger. |
He told BBC Radio Scotland's The Business programme that while he was not surprised by the projected losses, nationalisation was not a serious prospect. | He told BBC Radio Scotland's The Business programme that while he was not surprised by the projected losses, nationalisation was not a serious prospect. |
He said: "I think it was a very good acquisition, there will be some bumps in the road but it put Lloyds in a very strong position." | He said: "I think it was a very good acquisition, there will be some bumps in the road but it put Lloyds in a very strong position." |
Sir Peter also rejected the concept of a judicial inquiry into the running of HBOS. | Sir Peter also rejected the concept of a judicial inquiry into the running of HBOS. |
Meanwhile, shadow business secretary Kenneth Clarke branded the merger a "disaster", especially for Lloyds TSB, and accused ministers of overseeing a "shotgun marriage" of the two banks. | Meanwhile, shadow business secretary Kenneth Clarke branded the merger a "disaster", especially for Lloyds TSB, and accused ministers of overseeing a "shotgun marriage" of the two banks. |
"They should never have been allowed to merge," he added. | "They should never have been allowed to merge," he added. |
"Lloyds TSB was a boring bank, it was a steady bank, it hadn't done silly things." | "Lloyds TSB was a boring bank, it was a steady bank, it hadn't done silly things." |
Liberal Democrat treasury spokesman Vince Cable said it looked like he was concerned how the banks were drifting towards a situation where nationalisation could be inevitable. | Liberal Democrat treasury spokesman Vince Cable said it looked like he was concerned how the banks were drifting towards a situation where nationalisation could be inevitable. |
Lloyds chief executive Eric Daniels insisted the company's longer-term prospects were brighter. | Lloyds chief executive Eric Daniels insisted the company's longer-term prospects were brighter. |
"Lloyds Banking Group has the largest UK financial services franchise, with excellent long-term earnings potential," he added. | "Lloyds Banking Group has the largest UK financial services franchise, with excellent long-term earnings potential," he added. |