OFT concerned that state owned banks may distort the market
The Office of Fair Trading (OFT) has today issued a statement regarding the UK government's, and indirectly taxpayer's, influence on the UK banking sector. This is with regards to significant taxpayer shareholdings in Royal Bank of Scotland and Lloyds bank and exposure to Northern Rock and Bradford & Bingley. The OFT is concerned that political and governmental influences could distort the UK banking sector and cause serious problems in the future.
This further strengthens the UK government's recent decision to look at potentially selling off the various stakes in UK banks and withdrawing totally from direct influence over the sector. The Northern Rock, and its flip-flop strategy of recent months, is a perfect example of how the market has been influenced unduly by one company. Northern Rock initially incentivised customers to move their mortgages elsewhere with bonus payments made available, only to turn about-face over recent weeks and try to attract new mortgage business.
There is a feeling that the UK government is also using exposure to Royal Bank of Scotland and Lloyds bank as a way to direct banking strategies of the future and try to take the sector down a particular route. As we approach the general election there is also concern regarding manipulation of lending liquidity and mortgage approvals.
Share this..
Related stories
Will Tory calls for small business tax cuts be heard?
The Conservative Party has this week continued its new assault on the government's handling of the economy and called for an immediate tax cut for small businesses in the UK which are literally falling like flies as the economic downturn continues. The party has also called for business taxes to be suspended for a short period for those hardest hit to give them more chance of riding out the econo...
Read MoreInvestors attack stock markets in Portugal, Spain and Greece
The ongoing budget deficit problem which is affecting Greece has seemingly spilled over into Portugal and Spain with investors selling off stocks in these three stock markets due to fears over fiscal stability. The situation regarding Greece is well known, with a budget deficit four times the size of any other in the Eurozone, but Portugal and Spain have seemingly been affected by falling investor...
Read MoreUK government overcharged Northern Rock by £445 million
It has been revealed that the UK government overcharged Northern Rock by a massive £445 million on the interest charged against the taxpayer loan to the company. The revelation that the UK government charged a "premium" interest rate on the loan has shocked many in the city and while there had been hopes of a repayment of around £150 million to Northern Rock, the true figure has now been reveale...
Read MoreSimple mistakes which are handing money to the banking industry
In these times of economic concerns it is vital that the UK public review their banking arrangements on a regular basis and ensure they are getting value for money and services which they actually require. While there are a number of common errors which increase the overall cost of UK banking services, we would like to highlight the following issues: -
Monthly charges
...
Loans put a price on friendship
Brits lend their friends a total of £510 million each year, but this generosity could be costing more than money, according to new figures from Abbey Loans.The survey reports that 4.4 million friend-to-friend loans occur annually, with the downside being that 3.5 million people reported that they had fallen out with a mate over a loan.Paul Morrish, head of Abbey Loans, commented on the findings:...
Read More