Looking nervous, and in one
instance forgetting the question that had been asked, Brown,
who had been chancellor of the Exchequer, said as minister
in charge at the time he took responsibility for the
appointment of Crosby. Crosby stepped down as deputy
chairman of the Financial Services Authority on Wednesday
after he was accused of stifling warnings about HBOS's risky
expansion strategy, while he was head of that bank. The bank
was saved from extinction through a takeover by Lloyds
last year after the warnings about its dependence on
wholesale funding proved correct (See
"Brown's Banking Ally Quits.")
Brown said that regulatory
changes to the way banks are supervised would be made and
the Financial Services Authority would be given the power to
penalize banks that based their bonuses on short-term
He added that the push to
get banks to lend money to stimulate the economy would
continue, rejecting accusations from several members of
Parliament that the banks were sitting on their cash. "We
are doing the right thing: we are right to recapitalize
banks, right to give a fiscal stimulus to the economy and
right to deal with the problem of lending, and get credit
moving," said a somber Brown.
Mr Brown told MPs he
appointed Sir James on an independent panel's recommendation
and had not known at the time the FSA had concerns about
HBOS. But the Tories said that, as chancellor, he should
have known what was going on at the bank.
A spokesman said: "Gordon Brown set up this system [the FSA]
but appears completely ignorant of its warnings. "If he knew
what was going on why didn't he act? If he didn't, who on
earth was running the economy while he was chancellor?"
The Liaison Committee is
appointed to consider general matters relating to the work of
select committees; to advise the House of Commons Commission on
select committees; to choose select committee reports for debate
in the House and to hear evidence from the Prime Minister on
matters of public policy.
The Liaison Committee has heard
evidence from the Prime Minister on matters of public policy
since 2002. This is the second evidence session with Mr Brown as
Prime Minister since he took office in June 2007.
The panel’s members are the
Chairs of 30 Parliamentary Select Committees, each dealing with
a different area or issue.
The Sierra Herald would again
remind the authorities in Sierra Leone that this is what
democracy is all about with accountability forming the
And once again we would urge
donors not to continue pouring in aid that is not accounted for
to the people for whom it is meant.
If Sierra Leone's main donor
country the United Kingdom could have a procedure in place that
takes the Prime Minister to task on issues affecting the people
of the UK, we ask that such aid be tied to accounting to the
people of Sierra Leone and not for the purpose of filling out
DfID (UK Department for International Development) templates.