Holyrood challenged to investigate banks' decline

Published on Monday 25 May 2009 18:59

PARLIAMENT has been urged to set up a committee to examine the decline of some of Scotland's biggest banks.

Labour finance spokesman Andy Kerr called on Holyrood to examine the state of financial institutions. He has written to the other parties, as well as Independent MSP Margo MacDonald, on the issue.

Labour politicians are also planning on raising the matter with Scottish Parliament business managers.

About 300 people in Scotland will lose their jobs because of restructuring at Lloyds Banking Group. The organisation – formed after the takeover of Halifax Bank of Scotland (HBOS) by Lloyds TSB – announced it was making 625 full-time workers redundant across the UK.

Cutbacks by RBS were also announced, with unions saying Edinburgh and London will be badly hit by the 700 job losses. The move is part of 4,500 cuts announced last month.

Mr Kerr suggested Sir George Mathewson, the former chairman of RBS and the chairman of the Scottish Government's Council of Economic Advisers, could give evidence, as could former Bank of Scotland chief executive Sir Peter Burt and the current management of RBS, Lloyds and Dunfermline/Nationwide.