BROWN ACCUSED OVER LACK OF EARLY KNOWLEDGE OF NORTHERN ROCK PROBLEMS (Scarborough and Whitby Liberal Democrats)

Scarborough and Whitby Liberal Democrats <info@scarboroughandwhitbylibdems.org.uk>

BROWN ACCUSED OVER LACK OF EARLY KNOWLEDGE OF NORTHERN ROCK PROBLEMS

September 27, 2007 10:46 AM

Lib Dem Shadow Chancellor Vince Cable

In a Today programme interview this week Gordon Brown rejected suggestions the government had known early on about Northern Rock's problems but had failed to act in time to prevent a run on the bank. Chancellor Alistair Darling told Labour's conference that there are "lessons to be learnt" following the Northern Rock bank crisis. Mr Darling announced on Saturday that he is considering guaranteeing people's savings held in a bank or building society up to £100,000.

Lib Dem Shadow Chancellor Vince Cable said "It is staggering for Gordon Brown to claim that the government had not known early on about the problems at Northern Rock. It was openly discussed in the financial press months before this autumn that Northern Rock and other banks were engaged in a reckless expansion of mortgage lending and that this was likely to lead them into difficulties. If Gordon Brown didn't know, he should have known"