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.
Commons investigation into banking competition
The renowned Commons Treasury Select Committee will today begin an investigation into the UK banking sector with particular emphasis on the high street lenders and the lack of competition in this area. When you consider that the likes of Lloyds bank control about one third of this market with Santander, the Spanish giant, also controlling a significant portion, it is perhaps no surprise that the a...Read More
'Robin Hood' banker goes to jail
A "Robin Hood" bank worker diverted £7 million of his corporate clients' money to help out other businesses who were struggling financially, it has emerged.Benedict Hancock, 39, was sentenced to 18 months in jail at Blackfriars Crown Court for his false accounting.The court also heard that the majority of clients who had money transferred away from their accounts did not notice that it was missin...Read More
Northern Rock and Bradford & Bingley merger
Northern Rock and the Bradford & Bingley will be merged together by the UK government in an attempt to increase the pace at which UK taxpayers can expect to receive repayment of the loans offered by the government during the credit crunch. In effect the two "bad banks" from Northern Rock and Bradford & Bingley, which contain potentially toxic mortgage arrangements, will be brought together under a...Read More
Former Northern Rock chief issues apology
Matt Ridley, the former boss of Northern Rock between 2004 and 2007, has today issued a seemingly heartfelt apology regarding the collapse of the former leading mortgage provider in the UK. Matt Ridley, together with a number of former Northern Rock executives, received severe criticism in the financial press when the bank collapsed and needed £26 billion of taxpayer's money to stop it going out...Read More
Juniper Research predicts growth in mobile payments
The amount of money transacted via mobile phone is to increase five times over by 2013, Juniper Research has said.According to the firm, £151 billion per year is to be spent this way within five years, due to technological advances.Further findings from Juniper's study show that ticketing will make up around 40 per cent of the payments, while around 60 per cent will be made in the mobile phone ho...Read More