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No taxpayers' representatives on banks' boards
Nicholas Cecil, Chief Political Correspondent14.11.08
THE taxpayer will not have representatives directly on the boards of banks getting £37 billion of public funds, it emerged today.
The revelation appears to contradict assurances from Chancellor Alistair Darling.
The two economic experts appointed to oversee the taxpayer's cash injection into Royal Bank of Scotland, Lloyds TSB and HBOS today gave more details of how they aim to protect this public money.
Sir Philip Hampton, chairman of J Sainsbury, and John Kingman, a senior Treasury official, said in a letter to the Financial Times: "We must operate on a commercial basis at arm's length...our job [is] to manage the taxpayer's investments, not to manage the banks."
Mr Darling had said the taxpayer would be given "appropriate representation" on the boards of RBS and the merged Lloyds TSB/HBOS.
Reader views (7)
Thank heaven for that! We'd never have got our bonuses through if those idiots had come on the board. Can you imagine? They'd have mumbled about asking all sorts of daft questions just to get brownie points with the voters. We could never have drunk champers after the meeting - or perhaps we could, come to think of it. Not exactly straight themselves, are they?
- John Problem, Hackney Wick, London, UK
Well then our money doesn't go to the banks and being lied to time and time again is doing this government no favours at all.
- Sarah, London
So, none of the other board members pay taxes?
- Trunk, US
When we say we require a taxpayers representative just who do we mean? It is glaringly obvious the present Government have nobody who has the experience or knowledge to undertake this task and whoever was put in place would be a sitting duck if it goes pearshaped. Volunteers anyone?
- Ayliff Mcnab, Spain
Despite this government demonstrating time and again that they couldn't manage a doll's tea party it's ridiculous to have no representation on these boards. Somebody has to reform these banks and having a seat at the table would be a more flexible approach than more legislation. No point crying to the papers about bonuses for execs, when you passed up a board vote.
- Mark, London
isnt this one of the reasons that we are in this mess now?? How many times does this government need to be punched in the face before deciding to move? Fools!!
- Fly, london
"The revelation appears to contradict assurances from Chancellor Alistair Darling." In other words, he lied to us. Well, what a surprise!
- Keith Lonsdale, Doncaster
