Our bank
Sir: I regularly read Lord Bruce-Gardyne's contributions with interest. In his capacity, as a director of the Central Trustee Savings Bank, and with his undoubted knowledge of finance, parliamentary procedures and government, perhaps he could enlighten us on the following: It has been stated that the TSB is to go public, involving the issue of shares ranging in total value from £500 million to £800 million. It is also stated that TSB has no legal owners and therefore requires an Act of Parliament to allow the flotation to proceed. It is further suggested that the bank's customers will be allowed a favoured bite at this rich plum, providing they pay up.
My contention is that TSB's wealth has been built up on the funds of the people who placed their monies with the bank, since it is their monies (unlike a
commercial organisation where proprietors put up the cash) and their monies alone, on which TSB's present wealth is based. Depositors' money, I submit, is the equity of TSB and they are the owners. Now these owners will be asked to buy their own assets. I find it more than a little galling, especially as TSB has been using my deposited money for 34 years to help it reach its present state. It would be helpful for Lord Bruce-Gardyne to explain where my reasoning has gone wrong.
James Everett 20 Tudor Drive, Otford, Kent
Jock Bruce-Gardyne comments: Mr Everett has put his finger on an important aspect of the eventual flotation of the Trustee Savings Bank. But it will be up to the Treasury to decide this and many other aspects of the flotation in the legislation which will be needed to bring it about. So until this legislation is published — which may not be for some time — I'm afraid Mr Everett and others like him will have to wait and see.
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