Banking on Harrods
THOSE who cannot wait for the Fayed brothers to be hit by a thunderbolt — they were out in force on the Commons Trade and Industry Committees — turn their disappointment on the Bank of England. Harrods has a bank, hasn't it? And banks have to be controlled by fit and proper persons, haven't they? And the Governor has read what the inspectors said about the Fayeds? Then why doesn't the Bank come down with horse and foot and take Har- rods Bank away? The short answer must be that the Bank was given its powers in order to protect depositors, and to shut the doors on them might not be the most suitable way to protect them. (As for prospective depositors, I dare say they can read the newspapers and decide for themselves.) The long answer is that the powers are not arbitrary. The Bank must give notice that it means to use them, there is a right of reply, and a right of appeal, and somewhere in the background a tribunal. (So far, none of the supervisors' decisions has been over- turned, and they would quite like to keep things that way.) In fact, someone looking for a practical solution for Harrods Bank might well stipulate that a new owner should be found, within a set timescale. Buying the little bank might well appeal to one of the big banks who now want to market a distinctive 'private banking' ser- vice, as Lloyds plans to do with the old Cox's & Kings branch. In a little while I expect it will have happened.
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