Barrett demads answers from banks after second bailout (Aberdeen South & North Kincardine Liberal Democrats)

Aberdeen South & North Kincardine Liberal Democrats <info@aberdeensouthlibdems.org.uk>

Barrett demads answers from banks after second bailout

January 19, 2009 4:47 PM
Originally published by Scottish Liberal Democrats

John Barrett Liberal Democrat MP for Edinburgh West today called for banks to do more to justify the latest bail out plan after taxpayers were again asked to gamble hundreds of billions of pounds today in a second bank bailout.

With the initial £37 billion bail-out still not enough for banks to resume normal lending, Mr Barrett is demanding that any new bailout plan must require banks to pass on the benefits to customers and improve their lending conditions.John Barrett MP

Speaking ahead of a statement in the House of Commons giving details of the bailout, John Barrett said:

"Since the financial crises began I have been contacted by many profitable, well-run businesses that are being driven to the wall by banks either recalling loans, or revising their lending agreements."

"Despite the huge amounts of public money pumped into the banking industry the public are continuing to suffer. It is time for the banks to recognise that with public money comes a degree of responsibility to the public.

"It is simply not good enough that so much taxpayers' money has been given to the banks with so little to show for it.

"No bank would lend huge sums of money to an individual without an explanation of what the money was to be used for. In the same way, the banks need to explain what the public will get for this latest bailout package and to give assurances that businesses will be supported rather than undermined."