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.
UK government suffers blow in bond market
The UK government has today suffered a severe blow after Bill Gross, the co-founder of bond fund giant Pimco, suggested that the UK was "a must avoid" for investors. To add further insult to injury he also claimed that the UK was "resting on a bed of nitroglycerine" due to the massive debt racked up over the last couple of years. This comes on the day the UK economy officially moved out of rece...Read More
Asda announces ambitious plans for the future
UK retailing giant Asda has today announced plans to become the nation's biggest seller of clothing, homewares and entertainment by the year 2015 as well as the second largest food retailer in the UK. These are ambitious plans for the company after a major management reshuffle earlier this week appeared to cast some doubt on the short-term direction of corporate plans. So what exactly does Asda ha...Read More
CBI agrees UK recession is coming to an end
The Confederation of British Industry (CBI) has today released a statement confirming its belief that the UK recession will end in the fourth quarter of 2009. This will bring to a close the most damaging economic downturn in the UK since the 1930s and hopefully allow some companies to draw a line under recent problems and begin to look to the future. However, the CBI, like so many other busines...Read More
When will UK savers be rewarded?
At a time when many in the UK are up to their eyeballs in debt it would seem that the government is unwilling to help with those who are saved for years in the hope of giving themselves a comfortable retirement. So how can it be those who have overextended their finances in the short term are the recipients of taxpayer funding while those who have reduced their dependence on the state continue to...Read More
The ongoing risk to credit card holders
In a worrying development it has been revealed that two thirds of credit cards on offer in the UK are available to borrowers with an income of less than £10,000 a year. While this in itself is shocking enough, the fact that political party credit cards such as those provided by the Labour Party Conservative party and the Liberal Democrat party do not require any minimum income levels will surpris...Read More