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.
BoE voted for cut by 8-1
The Bank of England's (BoE) monetary policy committee (MPC) approved last month's 0.25 per cent reduction of the base rate of interest by eight to one, minutes from the meeting reveal. Earlier this month, the MPC announced the cut - which brought the key base rate down to 5.25 per cent - in a bid to stimulate the UK economy amid signs of stagnating growth. The member of the MPC who voted against t...Read More
Bankers bonuses under the spotlight again
As the news that HSBC and Barclays bank are potentially over the worst with regards to the UK recession and economic downturn, focus is now shifting towards the expected bonuses to be paid out this year. Estimates vary with regards to the exact figure which could be paid out in bonuses from the UK banking sector although the consensus is around the £4 billion mark. All at a time when UK taxpayers...Read More
Buy now pay later on the rise
A move which is effectively robbing Peter to pay Paul has seen a number of UK consumers building up significant problems for the future. Since the recession started to bite in the UK we have seen a significant rise in the number of "buy now pay later" deals as businesses struggle to attract custom and consumers struggle to finance their bargains. While it may be some time before the full extent of...Read More
Council tax set to increase by £57 a year
The average council tax in the UK is forecast to increase by £57 a year after the Conservative party reviewed the government's pre-budget report and the decision to cut back on public sector services. It is believed the Alistair Darling is looking to force UK councils to reduce public sector spending by as much as £550 million a year while increasing the council tax receipts by 4% which equates...Read More
Matalan announces impressive Christmas trade
Matalan, the out-of-town discount retailer, has today issued a statement regarding Christmas trade showing an increase of 13.7% in sales. This comes at a time when founder John Hargreaves is looking to offload the business for £1.5 billion and would appear to be in the final throes of agreeing a sale. While Matalan has often attracted controversial headlines it is worth remembering that John Harg...Read More