Financial Stability

The reason for my decision in relation to the Icelandic banks is the systemic problems that we now face in the banking industry. The Government will report on Equitable Life shortly, and of course the ombudsman's findings will be taken into account, but we also need to take account of the findings of Lord Penrose, who investigated what happened at Equitable Life at some length and concluded that that company was substantially the author of its own misfortunes. We have a duty to treat policyholders fairly, but, as people have been saying today, we also have a duty to be fair to taxpayers. I will report back to the House as soon as I can.