UK government details loans under RBS insurance scheme
The UK government has today issued details of the Royal Bank of Scotland's participation in the asset protection scheme and there is some concern about the make-up of the loans in question. More than half of the £280 billion of loans in the scheme have been agreed with foreign entities, something which is causing concern within the UK government. In reality, the UK taxpayer is paying to ensure loans which were agreed with foreign entities.
The massive document which details the RBS participation in the scheme also confirms that the UK government has the power to "parachute in" experts if it believes that the loans in question are not being managed correctly. Nobody quite expected the amount of detail which has been published and indeed there will be some embarrassment to those involved in the loans in question.
The Royal Bank of Scotland's entry to the scheme is funded by the UK taxpayer and will see the government's share stake in the business increase from 70% to 84%. It is also believed that the UK government has obtained the authority to block any staff bonus payments from Royal Bank of Scotland although whether this particular power will be used in the short to medium term is open to debate.
Kraft Foods US shareholders launch lawsuit
A lawsuit has been launched in America by a corporate shareholder in Kraft Foods suggesting that the Cadbury board of directors have not acted in the best interest of Cadbury shareholders and "may lose out massively" if the merger is rejected outright. So where does this leave the Cadbury board of directors?
The first thing to say is that UK mergers and acquisitions are regulated by...
Will UK banks ever recover?
As we look at the unbelievable scenario of the vast majority of UK banks potentially being nationalised over the coming weeks and months there are serious concerns that the UK banking sector is holed below the waterline. There are real worries that if the vast majority of the UK banking system is nationalised it could literally take decades for the system to be put back in order and handed over to...Read More
UK government issues raft of tax consultations
The UK government has chosen the final day of Parliament, before the summer recess, to introduce nine tax consultations which will drastically overhaul the UK taxation system. Some of the subjects which will be discussed in great detail by the government, business, consumers and MPs include the national minimum wage, inheritance tax and the PAYE system. While there is unlikely to be any great disc...Read More
Hammerson cautious on the UK property market
Property giant Hammerson has today issued a statement in relation to the worldwide, as specifically the UK, property market with a suggestion that we are not yet "out of the woods". The company owns a raft of leading shopping malls and while the retail sector is on the whole still struggling, those companies which have come through the worst of the recession are now beginning to see the light....Read More
How low will the Euro go?
Just a few months ago many in the European Union were feeling very pleased with themselves as sterling continued to suffer in the currency markets and indeed the euro hit parity with the UK currency. However, while the UK economy is by no means out of the woods yet it seems that a few months in the worldwide currency and investment markets is a long time! After hogging the headlines for many mo...Read More