Royal Bank of Scotland joins UK asset protection scheme
Despite attempting to wriggle off the hook, which is the UK government's asset protection scheme, the Royal Bank of Scotland has been forced to sign up and confirmed that this happened on 26 November. While there's no doubt that the scheme will protect the company's assets in the short to medium term, like Lloyds bank, the company had been attempting to negotiate an exit rather than pay the multibillion pound premium.
In a bizarre quake of fate, if the UK economy does take a further downturn, as some people believe it will in 2010, the scheme will become vital for Royal Bank of Scotland and Lloyds bank may well have made a mistake negotiating its own exit. The agreement which was signed by Royal Bank of Scotland is conditional upon approval by Royal Bank of Scotland shareholders and overall approval by the European commission which is now heavily involved in the UK banking sector and the restructuring of businesses such as Lloyds bank and Royal Bank of Scotland.
Now that the saga surrounding the asset protection scheme looks to be over there are hopes that the Royal Bank of Scotland management can look ahead to the future even though markets are still very difficult. This is a company which was the largest banking operation in the world at one stage, after a massive expansion programme, but has now come back down to earth with a bump and will need to rebuild from a very low base.
Is the UK credit card market anti-competitive?
As we continue to see the credit card market heavily criticised in the financial press for maintaining high rates as base rates continue to fall there is a concern that the historic competitive element of the UK credit card market has reduced of late. We have seen a number of major UK credit card companies either withdraw from the market completely or run down their operations and reduce the numbe...Read More
UK government turns on the public sector
In a sign of the times, or more likely a fight for votes in the UK, MPs have announced plans to name and shame those who have enormous salaries in the public sector. This is a sector which has ballooned in size under the Labour government but one which is now apparently public enemy number one due to the fact that gold plated pension schemes are still popular and the number of employees within the...Read More
Michael Martin finally leaves the Speaker's office
Michael Martin, the Speaker of the House of Commons, will go down in history as only the second Speaker ever to be dismissed from the house in over 300 years. While many believe he is being made a scapegoat for the MP's expenses scandal there is no doubt that under his control the House of Commons has become a more secretive and more reclusive institution with significant taxpayer funds used to tr...Read More
UK Unemployment hits 2.56 million
The amount of people unemployed in the UK rose by 70,000 between December and February according to the Office for National Statistics (ONS). The number of people employed in the UK also fell, meaning the unemployment rate currently stands at 7.9pc, raising further serious questions about the economic state of the UK. However the number of people claiming Jobseekers Allowance fell last month by...Read More
Has Cadbury found its white knight in shining armour?
UK chocolate giant Cadbury has delayed publication of its results amid speculation that the company may well be on the verge of announcing a potential white knight takeover offer. The company is currently under pressure from American outfit Kraft Foods which has tabled a £10 billion offer, amid speculation that it will at some point increase its bid. However, there appears to be renewed interest...Read More