Mervyn King turns on the bankers
Mervyn King, the governor of the Bank of England, yesterday hit back at the UK banking profession and admitted that UK regulators missed an opportunity to clamp down on excessive bonuses and remuneration packages during the depths of recession. As we covered in one of our earlier articles, Mervyn King was most certainly in apologetic mood yesterday and appeared to be attempting to curry favor with the unions.
Despite the fact that a number of union representatives turned their backs on the Mervyn King and walked out of during his speech he was given a far better reception than many had expected. When the governor of the Bank of England turns on the UK banking community then we know that the sector is most certainly public enemy number one. Quite why Mervyn King has taken this particular stance at this particular moment in time is something which is slightly puzzling.
However, the bottom line seems to be that the UK banking arena has been cut adrift more than ever before and historic friends that have defended the sector now appear to be turning against it. Whether the introduction of Mervyn King to the mix will make the UK banking arena think again is something which many people will be considering.
Ocado forced to revise downwards issue price
Despite an apparent reluctance to give in to market conditions and investor demand for new issues, Internet grocer Ocado has this evening been forced to reduce its asking price to a range of £1.80 to £2.00 from an initial estimate of £2.00 to £2.75. This reduces the potential valuation for the business from around £1 billion to around £800 billion although it looks as though the offer will b...Read More
David Cameron needs to sort out the FSA as soon as possible
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Royal Bank of Scotland directors face potential fraud investigation
In a move which has surprised many in the city it has been revealed that Sir Fred Goodwin and his former Royal Bank of Scotland directors could face a criminal investigation in relation to the administration of the Royal Bank of Scotland. The shares collapsed earlier this year amid signs that the group had overextended itself in foreign markets and was struggling on a liquidity basis.
Is the HSBC $5 billion fund enough?
The new five billion-dollar fund which HSBC has put aside for the small-business sector has been applauded by many in the UK and around the world but there are concerns that it is too little too late. While Small businesses in the UK are suffering, this situation is being replicated around the world where small businesses are being squeezed through lack of liquidity and weakened balance sheets. So...Read More
Tesco Long Term Debt Rating Is Lowered
News that Standard and Poors (the well know credit ratings agency) has lowered the long term and short term credit rating for Tesco from 'A-' to 'A' and 'A-2' to 'A-1' respectively has surprised some in the market. The move comes after, and because of, the move to acquire the outstanding 50% stake in the Royal Bank of Scotland joint venture.
Tesco will need to increase debts to ope...