Commentary on Sections Holding companies Section 82: Temporary public ownership
223.Section 82 provides that the Treasury may take a parent undertaking of a bank (“a holding company”) into temporary public ownership if three conditions are met. These conditions are that the FSA are satisfied that the general conditions set out in section 7 are met in relation to the bank; that the Treasury are satisfied that it is necessary to take action in respect of the holding company to resolve or reduce a serious threat to the stability of the financial systems of the United Kingdom or to protect the public interest where financial assistance has been provided in certain circumstances; and that the holding company is an undertaking incorporated in or formed under the law of the United Kingdom.
224.In determining whether the second condition is met, the Treasury must consult the FSA and the Bank of England.