Thurso backs Lloyds split and calls for independence for the Bank of Scotland
October 23, 2009 12:00 AM
During a Commons debate today, local MP John Thurso backed Mervyn King, Governor of the Bank of England's calls for banks to be split up so none are any longer "too big to fail." Calling for the Lloyds TSB merger to be reversed he also proposed making the Bank of Scotland independent.
John is both the Liberal Democrat Shadow Secretary for Business and a member of the influential Treasury Select Committee. He has long been a proponent of a separation of banking services between commercial high street banks which provide people and businesses with much needed capital and help grow the real economy and speculative banking which undertakes far riskier commercial operations for the promise of higher returns.
John said: "I would start - I encourage the Treasury to think about this - by taking Bank of Scotland out of the Lloyds group and putting competition into Scotland by making it independent. I suspect that Europe may well ask the Treasury to do that anyway."
John had firmly opposed the takeover of HBOS by the Lloyds TSB group and felt it was only possible as the HBOS crash occurred before the huge bailout of other banks. John said the break up of the Lloyds TSB group would make the banking sector safer, assuage EU concerns about market dominance, secure banking jobs in Scotland, and give small businesses and customers greater choice. It would also be a big step in restoring the group's finances to health.
John also raised concerns about the row between Lloyds TSB and the independent Lloyds TSB foundation. The charity has warned that it will only be able to operate for another seven weeks and which is not accepting new grant applications. Considering the massive public under pinning of the bank he felt the Government had a responsibility to sort out this row. A row which is hurting a charitable foundation that plays such an important role in Scotland and when the work of charities is especially important in these difficult economic times.
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