Clause 232
Banking Bill
3:30 pm
Angela Eagle (Parliamentary Secretary, HM Treasury; Wallasey, Labour)
I cannot answer that question as I have not been involved in this area since 2002. I can tell the hon. Gentleman, however, that clause 232 provides the power to make future regulations relating to financial collateral. That is an important aspect of underpinning markets and has to do with stability and current UK financial collateral regimes. A threatened court case does have some implications, but this is a key updating part of underpinning assumptions. A question about whether the understanding behind those assumptions was ultra vires was taken to court. It would have been very threatening had that been found to be the case, but this puts the issue beyond doubt.