Barings Bank (Hansard, 15 March 1995)

§ Mr. Hain
To ask the Chancellor of the Exchequer (1) if Barings bank breached the Banking Act 1987 over transfer of its capital to Singapore;
(2) if Barings bank received permission from the Bank of England to place more than 25 per cent. of its capital in Singapore.

§ Mr. Campbell-Savours
To ask the Chancellor of the Exchequer (1) on what date the issues raised at the board meeting of Barings in September 1994 were first communicated to the Bank of England;
(2) what communications were received by the Bank of England as to developing problems at either Barings in the United Kingdom or Singapore from overseas financial authorities in each of the last 24 months;
(3) when the Bank of England was first made aware of the Barings internal audit report outlining concerns over the activities of Mr. Nick Leeson.

§ Mr. Nelson
[holding answers 8 and 13 March 1995]: As my right hon. and learned Friend told the House on 27 February, he has asked the Board of Banking Supervision to investigate fully and urgently all aspects of the Barings episode and to report hack to him. He expects to publish the full report subject only to the need to protect the legitimate confidentiality of innocent third parties and any other legal constraints.

§ Mr. Campbell-Savours
To ask the Chancellor of the Exchequer on what date Ministers were first informed that Barings was unable to meet its financial commitments.

§ Mr. Nelson
[holding answer 13 March 1995]: On 24 February 1995.

§ Mr. Cash
To ask the Chancellor of the Exchequer if he(a) has given and (b) will give directions under section 4 of the Bank of England Act 1946 to the governor of the Bank of England to appear as a witness in inquiries into the Barings hank collapse.

§ Mr. Nelson
[holding answer 9 March 1995]: No.

§ Mr. Campbell-Savours
To ask the Chancellor of the Exchequer (1) when the Bank of England was first informed of the previous experience of Barings in establishing banking structures prior to March 1992 where problems arose as referred to in the BAX Memo;
(2) on what date the problems of Barings in Japanese markets in 1990 were first drawn to the attention of the Bank of England;
(3) on what date reassurances given by Mr. Anthony Hawes, Treasurer of Baring Securities to SIMEX on 8 February as to the ability of Barings to meet its financial commitments were made known to representatives of the Bank of England.

§ Mr. Nelson
As my right hon. and learned Friend told the House on 27 February, he has asked the Board of Banking Supervision to investigate fully and urgently all aspects of the Barings episode and to report back to him. He expects to publish the full report subject only to the need to protect the legitimate confidentiality of innocent third parties and any other legal constraints.