Lord Turner, Chairman of the Financial Services Authority, has issued a warning to failed banks that they could be forced to repay two years worth of salary.
Lord Turner has followed current US legislation as he has stated he feels that this would be an attractive option to deter banks from taking unnecessary or excessive risks in their business.
Lord Turner, Chairman of the Financial Services Authority, has issued a warning to failed banks that they could be forced to repay two years worth of salary.
Lord Turner has followed current US legislation as he has stated he feels that this would be an attractive option to deter banks from taking unnecessary or excessive risks in their business.
A report today by HSBC confirmed that 30% of adults in the UK have savings of less than £249 and indeed 19% have no savings whatsoever. While in some ways this is not necessarily a major surprise, bearing in mind the economic backdrop, the fact is that around 15 million people in the UK would struggle to get through the weekend if they lost their job tomorrow!
A report by HSBC has highlighted the fact that many in the UK are struggling to put any money aside for a "rainy day" and indeed those who lose their jobs in the future would struggle to survive on their savings. The report found that 30% of adults in the UK have less than £249 in their savings account with 19% having no savings at all. As a consequence 15 million people in the UK would struggle to get by the weekend if they lost their jobs tomorrow!
Over the last 24 hours the Bank of England has indirectly issued a number of potentially controversial comments regarding UK savers and the fact that they should be spending their savings rather than looking to the future. This comes during a period that has seen UK savers put under extreme pressure, feel unwanted and ultimately many have had to dip into their savings to get by. At a time when UK base rates have remained at 0.5% more than 18 months is it right that UK savers are now expected to dig deeper to inject more capital into the UK retail market?
Over the last 24 hours the Bank of England has indirectly issued a number of potentially controversial comments regarding UK savers and the fact that they should be spending their savings rather than looking to the future. This comes during a period that has seen UK savers put under extreme pressure, feel unwanted and ultimately many have had to dip into their savings to get by. At a time when UK base rates have remained at 0.5% more than 18 months is it right that UK savers are now expected to dig deeper to inject more capital into the UK retail market?
In what could turn out to be a significant public relations disaster for the Bank of England, Charles Bean, the deputy governor, today suggested that savers in the UK should stop moaning and start spending. He believes that savers in the UK should not expect to live off their interest and openly admitted that low interest rates are part of a larger strategy to encourage spending from those who are seeing minimal interest on their savings.
A report by Lloyds TSB suggests that the average household in the UK has put away £30,000 over the last decade in shares, pensions and deposit accounts. This is a 46% increase on the figure in the 1990s although when inflation is taken into account it is reduced to a lower level of just 14%. However, even a 14% increase is in itself startling when you bear in mind the economic background of the last few years.
In years gone by one of the key factors when considering investing your savings was the return available in investment markets and the return available in the savings market. At this moment in time there are some interesting long-term opportunities in the investment markets at a time when savings rates are minimal and many people are actually seeing the spending of their savings decrease due to the impact of inflation. So why are savers not investing their money?
Over the last few weeks there has been a significant increase in the number of people in the UK who are paying off their debts as opposed to building up further problems for the future. Many people seem to be happy to use their savings to reduce their debts but is this really a sensible course of action?
