Edward Leigh, chair of the public accounts committee, has written an angry letter to the Chancellor demanding to know why the £61bn loans to HBOS and RBS have only just been made public.
Alex suggested yesterday that the timing of the announcement could be related to an NAO report – out tomorrow imminently – which would have revealed the loan. Leigh has asked Alistair Darling to clarify if this is the case.
Here is the letter
Committee of Public Accounts
25 November 2009
Rt. Hon Alistair Darling MP
Chancellor of the Exchequer
Thank you for your letter of 23 November informing me that the Treasury granted the Bank an indemnity in October 2008 against losses it might incur in providing emergency support to RBS and HBOS. I followed this up with you in the House today and I must say that I cannot regard your answer as a full and sufficient explanation. I shall therefore await your further advice before deciding how to properly discharge my responsibilities in this situation.