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.
Lloyds to cut bank charges
Lloyds TSB has announced plans to cut its charges on unauthorised overdrafts.The bank is the first on the high street to announce such a policy on the much publicised charges, which have led to customer uproar and will go the High Court in a test case next year.The new lower charges - which will be introduced on November 2nd - will see the bank cut its interest rates on unauthorised borrowing by a...Read More
Bank profits 'cost households £441 each'
Financial marketplace Zopa has estimated that the cost of HBOS and RBS' profits results in a bill to each UK household of £441, marking a ten per cent year-on-year increase.Recently, the banks made their profits known, with HBOS recording a £5.7 billion total and RBS achieving a £9.2 billion profit."The truth is that banks in the UK have let down their customers badly by failing to deliver agai...Read More
Is the UK government about to be embarrassed over the Icelandic affair?
Amid claims that the government were aware of problems in Iceland prior to the collapse of the country's financial sector there are growing calls for a thorough investigation into the collapse where confirmation about what the government did and did not know would be requested. As we discussed yesterday there are claims that Gordon Brown knew about problems as far back as March 2008 although no ac...Read More
Financial Ombudsman criticises UK banks
The Financial Ombudsman has today issued a report on the UK banking sector and the way in which potentially legitimate complaints are handled. It is believed that tens of thousands of perfectly plausible and reasonable complaints are either ignored or "kicked into the long grass" by the banking arena in the UK. The allegations are serious to the extreme because ultimately the Financial Ombudsman i...Read More
OFT to review barriers to enter UK banking sector
The Office of Fair Trading (OFT) has today announced a wide-ranging review of the various barriers to entry for the UK banking sector. This comes at a time when the UK government, and the previous government, is looking to increase competition on the high street and competition in the UK banking arena in particular. There are specific areas which the OFT will look at including the regulatory envir...Read More