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.
HBOS customers reassured over rumours
Consumers who bank with HBOS have nothing to fear from market rumours that the bank is set to collapse, a price comparison site has said. The rumours are believed to have been initially circulated by City traders attempting to profit from the resulting drop in the lender's share prices. According to Kevin Mountford, head of savings at price comparison site moneysupermarket.com, talk of an HBOS is...Read More
New banking group raises £50 million
A new banking group in the UK, known as NBNK Investments, is looking to attack the UK banking arena and build up a business representing a market share of between four and 6%. It is hoped that the new operation, which so far has no representation on the high street, will be able to build up a network of between 400 and 600 branches across the UK and attack the existing banking system. There is...Read More
Will the Chelsea building society fall to a rival?
As the ongoing fallout from the £41 million alleged mortgage fraud which was discovered by the company's auditors continues, there is a feeling that the Chelsea building society's days of independence could be numbered. A new management board has been parachuted in to assess the situation and while in public they are talking about a reorganisation of the business and a return to grassroots, many...Read More
Lloyds TSB Hits Foreign Student With £660 In Charges
While Mongolian student Bayar Lkhagvajav may have only gone £1.86 overdrawn initially, the events which followed his error in judgement left him £58 in debt and charges of £660 on top. Even thogh Lkhagvajav's English was not the best in the world it still beggars belief that an initial £1.86 debt could spiral into £660 in charges - and only days before the banks are due back in court to figh...Read More
Virgin applies for banking licence in UK
Virgin Money, Richard Branson's Virgin finance offshoot, has today confirmed it has applied for a UK banking licence with the Financial Services Authority (FSA). While this is not a surprise, when you bear in mind that Virgin Money had been on the verge of acquiring Northern Rock before the UK government stepped in, it has set the rumour mill rolling again in the city.
It comes at a...