25 Nov 2009

Darling: Lloyds’ directors knew about secret loans

The sting has been taken out of the £60bn secret loan story. Alistair Darling just told the Commons that Lloyds’ directors knew all about the secret loans before starting its attempt to take over HBOS.

That was where the story threatened to go – insider dealing and lack of disclosure on the part of the government, which encouraged the Lloyds takeover of HBOS.

So, amazingly, given the risks and near death horrors revealed by this story, this statement by the Chancellor has calmed things down.

But that doesn’t mean the Chancellor came to the Commons willingly. He was summoned to do this by an increasingly active Speaker.

The Speaker has lately been summoning a lot of reluctant ministers to answer questions they don’t want to hear in the Commons.

There have been eight ministers dragged to the Commons in the last seven weeks. Today nearly made it a ninth.

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2 reader comments

  1. adrian clarke says:

    Perhaps this speaker (i do begin to warm to him when i watch his control of parliament),is saying to ministers , you have no right to conceal and be unanswerable to parliament.
    A small step for parliament but a large stride towards accountability.

  2. Kimberley Jones says:

    I also notice that the Chairman of the Public Accounts Committee has written to Darling. He feels that he should have been told about the contingent liability.
    I think this may run and run…

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