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.
UK banking sector is nationalised
In a move which has been broadly welcomed by the financial markets it looks as though the vast majority of the UK banking sector will be under government control by the end of the year. As RBS stepped forward for a £30 billion handout and the Lloyds Bank / HBOS merged entity stepped forward for £17 billion many shareholders are starting to fret big time. But why?
It turns out th...
IVA providers to meet with banks
Insolvency practitioners and banks are meeting later today in a bid to reach agreement on contentious areas surrounding individual voluntary arrangements (IVAs).IVAs have become a popular way of managing debt problems thanks to the huge growth in personal debt in the UK. They are legal contracts between borrowers and lenders which allow people to pay off a proportion of their debt and write off th...Read More
When did you last complain about your bank?
Even though the UK financial sector touches all areas of our lives, it seems that very few people in the UK have actually followed through with their complaints regarding financial investment, financial services and the financial sector as a whole. Recent figures from the Financial Services Authority (FSA) show that while having record complaints passed to the regulator, more and more people are h...Read More
Is the OFT giving up on the overdraft charge challenge?
The Office of Fair Trading (OFT) is expected to make an announcement tomorrow regarding the recent setback in the legal battle with UK banks about overdraft charges. While rumours in this particular case have been incorrect before, there is intense speculation that the OFT is about to drop its legal challenge and will not commit itself to an appeal. If the announcement confirms this particular...Read More
Defaqto points out variation in packaged account charges
Some packaged bank accounts are not good value for money, Defaqto suggested today.The data firm also released new analysis of the market, which showed that monthly charges for these "added value" accounts vary from £3 to £25.Among the "extras" offered by banks in their packaged accounts is travel insurance, card protection and preferential rates on loans.According to Defaqto, each service costs...Read More