Cable: No 10 comments on Lloyds nationalisation a u-turn waiting to happen

3.28.00pm GMT Mon 16th Feb 2009

Responding to comments made by Number 10 that the total nationalisation of the Lloyds Banking Group is not on the table, Liberal Democrat Shadow Chancellor, Vince Cable said: "This is a u-turn waiting to happen. With Lloyds continuing to be dragged down by the weight of HBOS’s losses, it is highly irresponsible to not even have nationalisation as an option."

"It is frankly out of the question that the Lloyds giant will be allowed to go under, so the Government must be honest in its assessment that the total nationalisation of the bank is a distinct possibility.

"It was always clear that the HBOS takeover was a serious problem not only for long-term competition but also for the stability of Lloyds. This is why the Liberal Democrats were the only party to vote against the takeover.

"The Government and the Conservatives must appreciate we are in a new financial world. We must now concentrate on sorting out the British banks, even if this means further nationalisations in the short term."