This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/8378087.stm

The article has changed 6 times. There is an RSS feed of changes available.

Version 2 Version 3
Darling defends secret bank loans Darling defends secret bank loans
(10 minutes later)
The Chancellor, Alistair Darling, has defended the Bank of England's secret loans to RBS and HBOS in an emergency statement to parliament.The Chancellor, Alistair Darling, has defended the Bank of England's secret loans to RBS and HBOS in an emergency statement to parliament.
Mr Darling said there was no cost to the taxpayer and that it was in the public interest.Mr Darling said there was no cost to the taxpayer and that it was in the public interest.
A debate had been called for by the Liberal Democrat treasury spokesman Vince Cable.A debate had been called for by the Liberal Democrat treasury spokesman Vince Cable.
It emerged on Tuesday that the two banks were secretly given £61.6bn last autumn to keep them afloat.It emerged on Tuesday that the two banks were secretly given £61.6bn last autumn to keep them afloat.
Both banks had repaid the loans by January 2009.Both banks had repaid the loans by January 2009.
FROM THE TODAY PROGRAMME Listen to the full interview
The shadow chancellor, George Osborne, said it was important that the Bank of England was allowed to carry out its function as lender of last resort.The shadow chancellor, George Osborne, said it was important that the Bank of England was allowed to carry out its function as lender of last resort.
But he added that it "raises the question of how...these banks came so close to collapse in the first place".But he added that it "raises the question of how...these banks came so close to collapse in the first place".
He said it underlined the need for fundamental reform to increase the power held by the Bank of England rather than regulators.He said it underlined the need for fundamental reform to increase the power held by the Bank of England rather than regulators.
Mr Cable said he agreed in principle with the action but wanted to know why the government had waited so long to announce the details of the loans in public.Mr Cable said he agreed in principle with the action but wanted to know why the government had waited so long to announce the details of the loans in public.
FROM THE TODAY PROGRAMME Listen to the full interview
Earlier, the government's City minister, Lord Myners, said Lloyds shareholders had been kept fully in the picture about the Bank of England's actions.Earlier, the government's City minister, Lord Myners, said Lloyds shareholders had been kept fully in the picture about the Bank of England's actions.
Lloyds was in the process of buying the struggling HBOS at the time.Lloyds was in the process of buying the struggling HBOS at the time.
Mr Myners denied that the "books were cooked", saying the Bank of England's accounts were audited and showed the impact of the support.Mr Myners denied that the "books were cooked", saying the Bank of England's accounts were audited and showed the impact of the support.
He added that the European Central Bank and the Federal Reserve had also carried out similar covert operations.He added that the European Central Bank and the Federal Reserve had also carried out similar covert operations.