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.
Royal Bank of Scotland plans return for UK taxpayer investment
Stephen Hester, the chief executive of the Royal Bank of Scotland, has promised UK taxpayers a return on their investment in the medium term. This comes despite the fact that bad debts have ballooned at the majority state-owned banking group and the company has again been forced to take further finance from the UK government. So what next for the Royal Bank of Scotland?
The Vultures Are Circling Bradford And Bingley
After news that US investor Texas Pacific is set to take a stake of about 20% in troubled UK bank Bradford & Bingley, many analysts believe that the company’s days as an independent are numbered. The move by Texas Pacific has come at the perfect time for investor with the recently announced fund raising seemingly in trouble and profits set to fall further than many analysts had first though...Read More
Barclays bank succumbs to public fury
It is rumoured that Barclays bank will introduce a bonus deferral system which will see top management defer up to 100% of their annual bonus for the next three years, middle ranking staff defer up to 75% of their bonus for next three years and low ranking staff defer up to 50% of their bonus for the next three years. It would seem that Barclays bank has succumbed to the public fury regarding bank...Read More
Astaire black hole investigated by FSA
UK stockbroker Astaire is today under investigation after informing the Financial Services Authority (FSA) of a potential £1.4 million black hole in its balance sheet. It is believed that issues at the company's Rowan Darlington operation left the company unable to reconcile its report and accounts and at the very least the company is likely to incur a significant fine from the FSA. It is like...Read More
Government attacks UK shareholders for inactivity
The UK government has today come out fighting as the blame game begins with regards to high-risk companies in the UK which have brought the economy down. The government has suggested that the various institutional shareholder associations in the UK have failed to monitor and react to boardroom decisions which in hindsight were high risk and potentially fatal to many companies.