§ Mr. Campbell-SavoursTo ask the Chancellor of the Exchequer on what date requests to close the New York office of Barings by the Securities and Exchange Commission were first communicated(a) to the Bank of England or (b) departmental officials.
§ Mr. Nelson[holding answer 13 March 1995]: On (a) as my right hon. and learned Friend told the House on 27 February, Official Report, columns 693–704, 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. On (b) Treasury officials were not approached.
§ Mr. Campbell-SavoursTo ask the Chancellor of the Exchequer on what date concerns expressed by Mr. James Bax as to Barings operations in Singapore in a memo of 1992 were first drawn to the attention of representatives of the Bank of England or departmental officials.
§ Mr. Nelson[holding answer 13 March 1995]: There was no requirement to bring this to the attention of the 24W Treasury, and no one did so. As for the Bank, my right hon. and learned Friend told the House on 27 February, columns 693–704, that 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.
§ Mr. Campbell-SavoursTo ask the Chancellor of the Exchequer what communications were received by Treasury officials as to developing problems at either Barings in the United Kingdom or in Singapore from overseas financial authorities in each of the last 24 months separately.
§ Mr. Nelson[holding answer 13 March 1995]: None.
§ Mr. Campbell-SavoursTo ask the Chancellor of the Exchequer whether Barings ever discussed with the Bank of England or Treasury officials a dispensation enabling Barings to breach rules in respect of cap on investments rules in the period between 1 December 1994 and 26 February 1995.
§ Mr. Nelson[holding answer 13 March 1995]: Such dispensations are not matters for the Treasury and officials were not approached. As for the Bank, my right hon. and learned Friend told the House on 27 February that he has asked the Board of Banking Supervision to investigate fully and urgently all aspects of this 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.
§ Mr. Campbell-SavoursTo ask the Chancellor of the Exchequer on what date the Bank of Japan was approached by Barings in January 1995 on matters relating to exposure in the Market first made known to Bank of England and or departmental officials.
§ Mr. Nelson[holding answer 13 March 1995]: There would have been no need for any such information to be made known to Treasury officials and, as far as I can ascertain, it was not. As for the Bank, 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.
§ Mr. Campbell-SavoursTo ask the Chancellor of the Exchequer on what date warnings by SIMEX in January and February as to Baring's exposure in the market were first communicated to the Bank of England and or departmental officials.
§ Mr. Nelson[holding answer 13 March 1995]: Treasury officials received no such information. As my right hon. and learned Friend told the House on 27 February columns 693–704, 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.
§ Mr. VazTo ask the Chancellor of the Exchequer what information he has on the number of banks which have closed in the last 30 years; on what dates they closed; and what was the value of their assets.
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§ Mr. NelsonFull information could be provided only at disproportionate cost. The following table lists United Kingdom authorised banks which have entered into administration, liquidation or provisional liquidation since 1980. It does not include banks which have ceased to be authorised by the Bank of England but which remained solvent. In most cases the value of assets has been taken either from statements of affairs or press releases and will be best estimates made at the time.
United Kingdom authorized banks which have closed since 1979 Closure date Value of assets £ Merbro Finance 1982 4 million First Guarantee Trust 1982 3 million Chancellor Finance 1983 1 million Goodwin Squires Securities 1983 negligible Trinity Trust and Savings 1983 4 million Bremar Holdings 1984 22 million Castle Court Trust 1984 7 million Cross and Bevingtons Finance 1984 negligible St. Martin le Grand Securities 1984 negligible Eastcheap Investments 1984 1 million Spring Gardens Securities 1986 1 million Oriental Credit 1986 10 million PL Investments 1987 1 million Consumer Credit Investments 1987 1 million British and Commonwealth Merchant Bank 1990 410 million Authority Bank 1991 49 million Chancery1 1991 164 million Edington 1991 33 million Wallace Smith Trust 1991 215 million Bradford Investments 1991 1 million BCCI (United Kingdom branches) 1991 $3.2 billion Rafidain Bank (United Kingdom branch)2 3 1991 201 million National Guardian Mortgage Corporation 1992 12 million Mount Banking Corporation 1992 188 million Deacon Hoare 1992 1 million Equatorial Bank 1993 83 million Roxburghe Bank 1993 34 million Wimbledon and South West Finance3 1994 24 million Baring Bros and Co. Ltd.3 1995 5.2 billion 1 Came out of administration and is now subject to company voluntary arrangement. 2 In provisional liquidation 3 Still authorized under the Banking Act.
§ Mr. SpellarTo ask the Chancellor of the Exchequer which local authorities or Government bodies had money deposited with Barings bank.
§ Mr. NelsonIt is for individual authorities and Government bodies to decide what details to disclose about their use of bank accounts. In any case, following ING's takeover of Barings, depositors' funds have now been unfrozen.