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.
Energy companies fined £36 million
28/11/2014 Power generation companies, Drax and InterGen, have both been fined £36 million after failing to meet energy saving targets for low income households. Drax, which is based in North Yorkshire, was hit with a £28 million fine, and InterGen an £11 million fine. The regulator, Ofgem, hit the companies with the penalties after they failed to meet targets to insulate homes under the...Read More
Tony Blair to advise Lansdowne Partners
Tony Blair has inadvertently placed the UK government in a very difficult position having taken on an advisory role with hedge funds expert Lansdowne Partners that will see him deliver four exclusive speeches to the company's staff. He will receive hundreds of thousands of pounds for the talks later this year which will cover a number of topics of interest to Lansdowne staff and their clients. Th...Read More
First cash for honours, now cash for laws?
A serious allegation has been made in the Sunday press regarding a number of Peers in the House of Lords and the potential for "cash for laws". While the allegation is to be thoroughly investigated by the authorities in the House of Lords there is real concern that UK politics could well be entering a new "sleaze" chapter. Those alleged to have agreed to take "cash for laws" have refuted the alleg...Read More
How our household bills have changed
Over the past 50 years, British households have moved from spending money on food and drink to spending the majority of household income on accommodation, according to the latest report.The Office of National Statistics (ONS) has carried out an overview of our spending habits now as compared to the 1950s.These days we spend the largest proportion of our earnings on mortgage or rent payments, follo...Read More
Could UK mortgage rates really hit 14% within two years?
As a consequence of a Think Tank forecast that UK base rates could rise to 8% over next two years, after the UK finally exits a potential double dip recession, there is the possibility that UK mortgage rates could rise to between 12% and 14%. This would be a crippling rise for the UK property market and could potentially push the UK back into a downward economic spiral. There is no doubt that even...Read More