In a submission to the tribunal ahead of a hearing on 16-17 April, David Blundell, chairman of the Bradford & Bingley Action Group, said he was appealing against a decision made last year to uphold the Cabinet Office’s right not to disclose information sought under Freedom of Information Act requests.
He said the requests had related to the bank’s nationalisation in late 2008 and had requested information relating to any documents that may have explained the decision to nationalise B&B at the height of the financial crisis.
Mr Blundell said that shortly after the bank’s nationalisation, the Cabinet Office “denied having any records” of events prior to the decision. However he said he believed the continued denial of information “supported BBAG’s view that the decision to nationalise the bank was primarily political”.
The Cabinet Office’s admission arose in response to a request made on 13 October 2008 by Mr Jonathan Bloch, a London-based B&B shareholder.
Despite thousands of freedom of information requests from B&B bond and shareholders since the bank’s nationalisation more than four years ago, Mr Blundell said investors were still no wiser on why the government and tripartite regulatory authorities acted as they did.
Mr Blundell said the action group will argue that the decision on B&B was “neither proportionate nor equitable” and “not consistent” with the support given to other banks at the time.
Adviser Comment:
Derek Bradley, founder of adviser community PanaceaAdviser, said: “Almost 1m former shareholders of B&B faced estimated average losses of between £800 and £1000 each.
“BBAG has a right to know what exactly went on behind Gordon Brown’s door that led to the losses. It may not like the answer it gets, but the shareholders are entitled to know.
“Government today seems to be expecting that those it governs, taxes and legislates to be more open in their dealings. Select committees haul over the coals those citizens and corporations it feels are failing them in this regard.
“This openness should be reciprocated and BBAG should get open and honest answers – or do governments just not do ‘open and honest’ anymore unless it paints a positive picture or serves their own political agendas?”
