Bank Of Credit And Commerce International - Close Of Liquidation

EDM number 2994 in 2010-12, proposed by Keith Vaz on 24/04/2012.
Categorised under the topic of Financial institutions.

That this House welcomes the announcement that after 21 years the liquidation of the Bank of Credit and CommerceInternational (BCCI)is finally drawing to a close; further welcomes the 3.5 per cent dividend for creditors which is due to be paid out shortly; notes the liquidators Deloitte Touche have nominated 17 May 2012 for the final meeting of creditors; further notes that when BCCI closed, right hon. and hon. Members were told by the then Chancellor, noble Lord Lawson, and the then Prime Minister, Sir John Major, on the advice of the Governor of the Bank of England, that the bank had a black hole in its finances and there was no money to pay creditors; actually finds that creditors have now received 90 per cent of money paid; further notes that successive governments' actions in support of depositors of Northern Rock, Royal Bank of Scotland and Lloyds TSB have contrasted to the lack of support for BCCI creditors; recalls that Sheikh Zayed offered to cover any missing money to creditors, but that this offer was rejected by the then Government; recalls that had such an offer been accepted the lives of thousands of creditors and staff would be considerably different; and hopes that lessons can be learnt from this long-running and painful saga.

This motion has been signed by a total of 7 MPs.