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channelled into the main government account. If the Consolidated Fund has a surplus then it is transferred to the NLF to reduce the government’s borrowing requirements. Similarly, a deficit on the consolidated fund is financed by a transfer from the NLF. This arrangement of accounting is called the ‘Exchequer pyramid’. The DMO’s market objective is to offset the
governor and three deputy governors plus nine non-executive directors appointed by the crown from a wide range of interests. Note that the non-executive directors provide the majority. The chair and deputy chair are selected by the Chancellor of the Exchequer from the non-executive members. The deputy governors are appointed for five years and the directors for three years, with the
government investment was equivalent to a 60% holding. This was subsequently increased to 70%. It was stressed by the Chancellor of the Exchequer that the funds advanced were for the purpose of a temporary boost of the banks’ capital and the stake would be sold when market conditions permitted. Hence it was argued that this was not a case of nationalisation of the two banks