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.
Have you reviewed your financial situation since the turn of the year?
While there have been signs that the UK economy may be stabilising in the short term, many people are still burying their head in the sand with regards to their own financial affairs and hoping everything will "come right" in the end. However, even if the UK economy was to recover in the short to medium term there will still be a significant lag in the employment market with unemployment set to ri...Read More
First Direct withdraws mortgage deals
First Direct has become the first of the UK's major lenders to withdraw its complete range of mortgage products. In a statement released today, the company announced it was suspending all new lending on a temporary basis. The decision has been taken following a five-fold increase in demand for its products, it is claimed, with analysts attributing the rise in applications to the competitiveness of...Read More
Car scrappage allowance could become a goldmine
It has been revealed that only days after the UK government announced an allowance programme for those scrapping older cars there are a significant number of loopholes in the proposals. Apparently, cars which are no longer roadworthy and effectively "off road" can still be traded in with the owners receiving upwards of £1000 for the vehicle.
There are concerns that the allowance be...
Lending Figures Up For April But Down Year On Year
Those looking for even the merest snippet of good news in the UK lending market would have been glad to see lending figures from the Council of Mortgage Lenders (CML) which showed an increase of 9% in the number of mortgages approved in April against the previous month. However, the actually year on year figure is down from 80,500 in April last year to 50,700 in April 2008, a substantial fall.
Is Gordon Brown starting to panic about the recession?
Tonight there are new claims that Gordon Brown is starting to show signs of panic after the announcement that the UK is officially in recession. The opposition parties appear to have sensed a draining of confidence from the UK Treasury and the Prime Minister after literally billions and billions of pounds appear to have been wasted on a number of rescue packages. The situation with the UK economy...Read More