Fears over 'soft loan' for Equitable

EQUITABLE Life campaigners fear that the Treasury is looking at the option of making a 'soft loan' to the troubled insurer as a way of avoiding paying compensation to policyholders.

Speculation is mounting that the Government might offer a loan facility to Equitable's with-profit fund to shore up its solvency following publication of the long-awaited report into its near collapse by Scottish judge Lord Penrose.

Paul Braithwaite, of the Equitable Members Action Group, said: 'What we want is proper compensation, not a loan.'

Equitable poured cold water on suggestions that its chairman Vanni Treves is about to quit. Treves, who is stepping down as chairman of Channel 4, has been approached about chairing BAE and ITV.

A spokesman said: 'Vanni Treves has no plans to leave Equitable Life and the subject has never been discussed by the board.'