Banking: Financial Stability

My Lords, on the latter point, we are identifying the institutions that will qualify for access to the resources. I am all too well aware that the noble Lord understands fully the complexity of international lending, but the authorities will be lending to banks which are clearly identified participants in this scheme—they are British banks and building societies—and in them will be taken preference shares to safeguard the position of the taxpayer. I hear the noble Lord when he says that the Government would be wise to think in terms of participatory preference shares as well. These issues will be matters for negotiation with the banks, but we have emphasised preference shares because the Government are properly concerned about the security of the return to the taxpayer in due course. On the more general matters raised by the noble Lord, let me assure him that in our discussions with the crucial banks which were able to participate yesterday evening and, I might add, through a good deal of the night, these issues have been worked through in broad and general terms. However, it is recognised that separate negotiations will take place with each of the participating institutions.