Banks’ role in the collapse
Spring questioned banks’ extended credit to H. Williams and its withdrawal. Brennan said the banks’ role had been considered, but no action was deemed necessary beyond advising banks and customers to exercise normal commercial caution.
Has the Minister or his Department any view to express in relation to the conduct of the banks in this whole debacle? What does the Minister think of the conduct of the banks in allowing extended credit lines which at the end of the day when they withdrew this facility resulted in the immediate collapse of this group? Has the Minister or his Department considered the role of the banks in this?
Comment on this
In regard to H. Williams, the role of the banks has been looked at as has the role of the extra credit, for example, extended to suppliers. There are many people with different roles in the collapse of the H. Williams operation. All one can say with regard to the banks is that we have not concluded that any action is necessary there other than to advise both banks and customers of normal commercial caution.