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.
Trickle of traders seen moving to the Far East
Over the last few weeks we have seen a number of prominent traders in the UK moving to Far East operations with Steve Ashley, the Royal Bank of Scotland trader, the latest to make the move. Amid growing concerns that the UK government's 50% income tax rate on banking bonus is a starting to impact on sentiment, there are fears that this trickle could soon become a tidal wave. So what can the govern...Read More
Royal Bank of Scotland under pressure regarding bonus scheme
A Royal Bank of Scotland bonus scheme which awarded millions of pounds of shares to four Royal Bank of Scotland bankers last week is under severe pressure today. This is a bank which is 70% owned by the taxpayer and despite government demands that strict criteria are built into any future bonus packages, Royal Bank of Scotland seems to be ignoring this criteria at the moment. This is a serious emb...Read More
Sorry Seems To Be The Hardest Word For RBS
Sir Fred Goodwin was forced into a grovelling apology to shareholders after Royal Bank of Scotland, the banking giant that he controls, announced pre-tax losses of nearly £700 million - the second worst ever by a British bank. So what has gone wrong and what can Sir Fred do about it?
A quick straw poll around the City seems to indicate that the majority of analysts believe that Si...
Phones4U To Be Investigated By OFCOM
In a move which has been welcomed by consumer groups, we are set to see the first formal investigation of a mobile phone company over alleged mis-selling. Mobile phone retailer Phones4u has received notice that the telecom regulator, OFCOM, is looking into a number of complaints about cash-back deals. While OFCOM is not giving away much about the investigation, insiders believe that it may be...Read More
Is this the end of the hedge fund?
The collapse of the Bernard Madoff investment fund operation has placed hedge funds back under the microscope at a time when they are suffering more than most. These are funds which often take large and potentially risky positions in various investment markets which can result in substantial swings in asset values. They have been blamed for a number of short selling situations, in particular the U...Read More