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.
Has Alistair Darling won his battle with Gordon Brown?
It is rumoured Alistair Darling is currently in the process of warning ministers and various departments in the government that they will need to reduce their public spending in the short to medium term. Despite promising that areas such as the NHS would continue to receive increased investment year-on-year, many departments will have to reduce their spending by as much as 16%! Public sector sp...Read More
Scottish bankruptcies and insolvencies on the increase
It has been revealed that the trend in bankruptcies and insolvencies in Scotland is far more aggressive than that seen south of the border, which is concerning the Scottish Executive. While there is no one factor which is apparently causing such a rise in insolvencies and bankruptcies in Scotland there are concerns that the economy will recover significantly slower than the rest of the UK as and w...Read More
IMF expects 4.2% worldwide economic growth
The IMF (International Monetary Fund) has today issued a new report regarding the worldwide economy with a suggestion that growth will be 4.2% for the current year. This is a significant upgrade on the earlier forecasts although there is a warning that the performance of individual economies would vary significantly across the board. As with the UK, the IMF has cited problems with government sp...Read More
BAA Sues Ryanair For Unpaid Landing Fees
News that BAA is suing Ryanair for unpaid landing fees accumulated at the groups Stansted airport is probably the last bit of news the company would want in the public eye at the moment. While there is no suggestion whatsoever that the group is not able to pay the fees, the headlines in the press could easily be misinterpreted.
The argument goes back to April this year when BAA dec...
Will the New Year has seen an increase in mortgage funding liquidity?
As foreign exchange markets continue to price in a further reduction in UK base rates there are growing hopes that the UK mortgage industry will see an improvement in liquidity in the New Year. However, we have seen many false promises over the last few months from both the government and the mortgage providers in the UK so nothing should be taken for granted. So is it time to lock yourself into a...Read More