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.
Do I need an overdraft?
The subject of overdrafts, and overdraft fees, has been in the financial press for many months now and will continue to grab the headlines for some time to come. However, there is no doubt that many people across the UK make good use of their overdrafts to give themselves a buffer between unexpected expenditure and everyday spending. But do you actually need an overdraft? For many people the ve...Read More
New era beckons for UK building societies
Yesterday we reported on the financial changes going through at the West Bromwich building society and the potential impact this would have on the society's members. In exchange for writing off significant debts, investors have been offered shares that will participate in future profit-sharing programs but also dramatically increase the financial strength of the operation. It now appears as though...Read More
Has Gordon Brown broken the Iceland economy?
As the political tension between the UK and Iceland continues to build up the Icelandic government has accused Gordon Brown of wrecking their economy after a dramatic fall in the country's currency after comments attributed to the UK government. It seems to be the comments that Iceland was 'affectively' in default of payments that spooked the markets and led to a run on the currency.
More than a third of Brits bank online
A decade after the advent of internet banking, a report from Nationwide shows that 37 per cent of British people now manage their money online. Half of those who bank online said it was easy and 53 per cent said they found it convenient. One user in nine accesses internet banking as they can not always get to their local branch and one in 25 preferred the paperless process. Over half of online ban...Read More
What happens now with the Chelsea and Yorkshire building society merger?
Letters of explanation will be sent to Yorkshire and Chelsea building society members within the next 10 days explaining exactly what is on the table and what their voting options are. At least 75% of savers and 50% of borrowers must vote in favour of the deal for it to go ahead, at which point the transaction would be put to the Financial Services Authority (FSA) for clearance. The merged oper...Read More