Is there a UK government bias towards the Royal Bank of Scotland?
The last few weeks have been dominated by the Royal Bank of Scotland, pension arrangements, write-offs and weakened balance sheets. The company has taken on board more taxpayer funding than any other company in the market and just yesterday there was an indication that Lloyds Bank was being denied access to immediate toxic asset insurance while the Royal Bank of Scotland deal has already been sealed. Is there a bias towards the Royal Bank of Scotland?
Rumours are abound in the market that for some reason the Royal Bank of Scotland is reportedly receiving more than its fair share of attention as others in the banking sector continued to fall. Lloyds Bank effectively did the UK government a massive favour in taking on the liabilities and business of HBOS but has apparently been "hung out to dry" while the Royal Bank of Scotland signs up to its toxic asset insurance plan. Official opinions and official explanations for the delay are conflicting which has led to severe concern in the UK stock market. Can there really be a Scottish bias towards the Royal Bank of Scotland?
While it may seem that way to some people in the market at the moment it is highly unlikely that the Royal Bank of Scotland is receiving seemingly focused attention to the detriment of others just because it is based in Scotland. Even although there is a forthcoming independence vote due next year in Scotland surely this can have nothing to do with the ongoing focus on this famous Scottish bank.
It seems inevitable that the Lloyds Bank deal will be completed next week and all talk of bias and undue attention should then disappear.
Share this..
Related stories
HSBC announces £12.5 billion rights issue and job cuts
HSBC has this morning confirmed a £12.5 billion rights issue and the loss of 1200 jobs in the UK. While this comes as no surprise to those in the industry it is a further blow for the UK job market as more and more observers forecast significant job cuts in the future. The 1200 jobs at risk will be spread amongst the company's operations in the UK as it seems there is no hiding place from the ong...
Read MoreLloyds bank optimistic about fundraising
The cumulative £22.5 billion fund raising currently under away at Lloyds bank is apparently going fairly well with news that the debt for equity swap has received a very favourable response from tier 1 and tier 2 debt holders. In effect they are being given the chance to convert their debt into "contingent capital" which could carry a coupon of up to 10% per annum. Such has been the interest for...
Read MoreHas the financial market lost the trust factor of consumers?
There have been significant changes in the UK financial sector over the last 18 months that have ultimately seen more and more consumers struggling to survive while taxpayer funding is used to bail out the banks. We've also seen a massive increase in the number of homes repossessed and debt collectors are becoming commonplace across the UK as banks look to call in monies due. So has the financial...
Read MoreMore questions about UK finances but no answers
The main political parties have been campaigning tirelessly on the TV and in newspapers this week as we approach the general election. However, despite more and more questions about the UK budget, UK government finances and the UK economy we are seeing fewer and fewer answers from the main political parties. It seems that all politicians at the moment are answering a question with another question...
Read MoreLloyds bank loses £54 million tax court case
The pressure on Lloyds bank finances continues with news that the company has lost a £54 million court case regarding a tax bill connected to its HBOS subsidiary some years ago. The issue goes back to 2003 and the company's exposure to failed US giant AIG which prompted the creation of an overseas holding company into which derivative instruments were liquidated after HBOS agreed to pay £2.2 mil...
Read More