Is George Osborne about to hit the UK banking industry?
Many believe that George Osborne will use his Mansion House speech this evening to launch a number of new initiatives aimed at the UK banking arena. He will warn them that they need to pay for the damage which "they inflicted" on the UK economy and indeed there will be talk of new banking taxes and a banking levy discussed.
It is also believed that many Liberal Democrat politicians are pushing George Osborne to instigate an investigation into integrated banking arrangements such as Barclays Bank, which operate both commercial banking activities and investment banking operations. Some of the more radical moves discussed include splitting commercial banking and investment banking into two separate entities thereby reducing the risk to an overall company from any one of these operations. This is not something which will go down well in the City where the likes of Barclays Bank, one of the integrated banking giants, has operated relatively successfully for many years.
Even though it may seem like a knee-jerk reaction to a once-in-a-lifetime event, i.e. the credit crunch, the UK banking arena could be about to change forever with many people concerned that the financial industry has become too powerful and too influential.
FSA to dish out fines to UK banks
The FSA (Financial Services Authority) has today confirmed that two UK banks are in line for significant fines for the mishandling of customer complaints. It was also confirmed that problems have been discovered at five banking groups in the UK, two of which have been referred for further investigation, and five others are currently amending their complaints procedures. Consumers have been conc...Read More
Adam Posen criticises competition in the UK banking sector
Adam Posen, a member of the MPC, has today stepped into the public domain to criticise competition in the UK banking arena at a time when businesses and consumers are crying out for more liquidity. While he appreciates that the UK is probably ahead of the EU and even the US in terms of tackling various banking problems, he believes that the fact that five major banks in the UK control the vast maj...Read More
Bradford And Bingley Announces New Bond Yielding Around 7%
Even though the Bank of England has decided to keep interest rates at 5% for the moment, Bradford and Bingley has announced the launch of a new bond this week which will give investors around 7% gross. The bonds are available over 1 year, 2 year and 3 year durations and are currently the best on offer in the marketplace.
The minimum investment for these bonds is £1,000 and the max...
Royal Bank of Scotland jumps the gun on overdraft charges
Royal Bank of Scotland, which is majority owned by the UK government on behalf of UK taxpayers, has today jumped the gun ahead of a House of Lords ruling on overdraft charges and announced significant reductions to come in from 1 October. The cost of a bounced cheque or unpaid direct debit, due to a lack of funds, will fall from £38 to just £5 and the charge for acquiring an item using unauthori...Read More
New Century Bank targets UK
US-based financial group New Century Bank has confirmed an application for a UK banking licence has been lodged with the Financial Services Authority (FSA). It is believed the company has around £200 million into invest this new venture which will be targeted at rural areas of the UK where many customers have become disgruntled by their treatment at the hands of the high street giants. New Cen...Read More