Mr. John Corrigan:

As the Chairman stated, the issue of State Street's behaviour came up at the Committee of Public Accounts. On foot of the hearing of the Committee of Public Accounts and at the request of that committee, we wrote to the chairman of the Financial Services Authority in the United Kingdom, Lord Turner, forwarding him a transcript of the evidence before the Committee of Public Accounts and expressing the committee's concern that the authority had not reported. We got back a positive reply in the sense that the chairman of the authority stated that the authority was following the matter up as quickly as it could and would report on it.

As regards our relationship with State Street, State Street has successfully managed money for us over the years on behalf of the pensions fund. An indexed portfolio, it matches the return on certain stock market indices. We have taken the view commercially that it makes sense, because we do not have an issue with the management of that, to wait until we see the FSA report. We have been made good on the face losses that were incurred on the State Street transactions. We have accepted that money, but not on the basis of full and final settlement. The matter is still open in terms of seeking further remedies. We feel that it makes sense commercially to leave matters, just for the moment.