Darling's Message To Banks Is Hypocritical - Cable

1.33.00pm BST (GMT +0100) Thu 18th Oct 2007

Following Alistair Darling's comments in a newspaper interview that banks and building societies must be more responsible with their lending, Acting Liberal Democrat Leader and Shadow Chancellor, Vince Cable MP said: "It is hypocritical for the Chancellor to be giving advice to banks and building societies about responsible lending.

"By using taxpayers' money to underwrite Northern Rock and taking no action to change its structures, the Government has become complicit in reckless lending and toxic mortgages.

"How can ministers preach to the banks about irresponsible lending when the bank which it has direct responsibility for is the worst offender?

"Why didn't the Government insist as part of its bail-out conditions that the bank changes its business practices and ensure that those responsible are held to account?

"Alistair Darling is completely confused and hypocritical. The Government's behaviour in relation to Northern Rock is dangerous in a context where there are authoritative warnings about the state of the housing market.

"I will be writing to the Prime Minister today to voice my concerns. He and his Chancellor must act now to tackle irresponsible lending by Northern Rock."