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.
The FTSE 100 comes under pressure
The UK stock market, after an encouraging start to 2010, is today under pressure amid concerns that the UK economy may well slip back into recession in the short term. After hitting a peak of just under 5500 in mid-January the market now stand at around 5275 with some investors concerned about the short-term outlook for UK stocks and shares. Whether this is just a short-term correction after a...Read More
Investors looking towards gas market
With the short to medium term direction of the worldwide economy unclear to say the least, more and more investors are now looking towards the gas market which has seen prices soar by 65% over the last month. Today's announcement by Ofgem has also placed more focus upon the UK gas market with a suggestion that £200 billion will need to be raised from the energy market in order that the UK is able...Read More
Volcanic ash cost BA £28 million
The volcanic ash saga is alleged to have cost UK airports owner BAA somewhere in the region of £28 million. The forced closure of London airports from 15 April to 20 April has proved to be a financial disaster for the company and BAA is looking at options to try and recoup this from the regulators and the European Union. It is believed that the crisis has cost the worldwide aviation industry s...Read More
Where did all the money go?
As the UK economy continues to bump along in recession many people are now wondering where the billions upon billions of pounds of taxpayer's money has all gone. We have seen a quantitative easing investment programme in the billions, we have seen VAT reduced, we have seen the UK government take a large stakes in UK banks and investment programmes continue up and down the country. However, if the...Read More
Post Office beefs up mortgage operation
The Post Office has introduced a total revamp of its mortgage operation which has seen the introduction of a base rate tracker, two and three-year fixed-rate deals and a five-year mortgage agreement which has topped the best buy league. The five-year deal is fixed at 5.09% although it only offers 60% loan to value and comes with a rather hefty £599 arrangement fee.
At a time when t...