Banks and Government both to blame for debt crisis - Cable

6.26.00pm BST (GMT +0100) Fri 13th Oct 2006

Vince Cable

Responding to comments made by Trade and Industry Minister Jim Fitzpatrick that "maybe banks have been lending too much money or maybe they're not being as careful as they used to be", Liberal Democrat Shadow Chancellor, Vincent Cable MP said:

"The Government's response to the debt crisis is to snipe at banks on individual areas of banking rather than taking a comprehensive look at banks' profitability.

"Instead of taking pop-shots at each other, both banks and Government must recognise that there is a common problem that each has helped to create.

"There is now a serious household debt crisis and it is high time the Government took the lead and got the major banks together to discuss how to deal with rising loan defaults and mortgage repossessions."