§ Mr. Staintonasked the Secretary of State for Trade and Industry if he will take steps to establish that the doubtful viability of the London and County Securities Limited group does not apply to or will not affect similar operations run by other companies, having regard equally to the interests of shareholders and depositors, policy and bond holders, and persons with second mortgages.
§ Sir G. HoweI see no need for special action of the kind suggested. A system for monitoring the accounts of deposit-taking companies at six-monthly intervals already exists under the terms of the Protection of Depositors Act 1963.
§ Mr. Staintonasked the Secretary of State for Trade and Industry if he will investigate the second mortgage and banking transactions of the London and County Securities Limited group with a view to protecting members of the public who may be involved as borrowers or depositors in this banking concern.
§ Sir G. HoweAs I indicated in reply to the right hon. Gentleman the Member for Bristol, South-East (Mr. Benn) on 3rd December—[Vol. 865, c. 909–16]— certain inquiries are already being made by my Department. The scope of these 407W will be extended if necessary. I understand that the consortium which is taking over the affairs of London and County Securities Group Ltd. has arranged for substantial financial support and is satisfied that the amount involved is sufficient to safeguard the interests of depositors.