UK banking sector is nationalised
In a move which has been broadly welcomed by the financial markets it looks as though the vast majority of the UK banking sector will be under government control by the end of the year. As RBS stepped forward for a £30 billion handout and the Lloyds Bank / HBOS merged entity stepped forward for £17 billion many shareholders are starting to fret big time. But why?
It turns out that the chief executives at the top of the RBS, Lloyds Bank and HBOS tree are all for the chop as part of the deal with a new executive placed on the board of each of the groups to protect tax payers interests. There is now confusion about the future dividend policy of the banks in question and what role the government will play in the future direction of the banks.
As the move has been broadly well received there is a growing concern that the government may well look at other financial sectors such as insurance, etc. The deeper this nationalisation move goes the more concerned market will become as there may well be no free financial market left in the UK. What affect would this have on worldwide business and the attractions of London?
Share this..
Related stories
Parents urged to encourage youngsters to save
Parents are being called on to get their children into the habit of saving from an early age, so that they do not end up living a life in debt.Many people suffer debt problems because they have become used to a life in which they are constantly using credit cards and loans to fund their lifestyles, but LV= has argued parents should be teaching youngsters to save their pennies so that they become u...
Read MoreSterling suffers as inflation falls again
Inflation in the UK fell to a five-year low of 1.1% in September after large energy price increases in September 2008 were not repeated in 2009. While there were other elements which accounted for the fall in inflation to 1.1% it is the energy situation which has had the greatest impact. So what does this mean for the UK economy and sterling in particular?
Despite the fact that ster...
UK unemployment at 1.7 million
The number of unemployed people in Britain has risen by more than 100,000 since the beginning of 2007 to reach a total of 1.7 million.According to official government figures, the unemployment rate over the last quarter was up 0.3 per cent on last year at 5.5 per cent, with 13,000 extra jobless people recorded between January and March.But the Office for National Statistics (ONS) says that the num...
Read MorePutting money aside for the kids
Even though life is tough up and down the country it seems that more and more people are now looking to put aside a small amount of money for their children on a regular basis. Many parents believe that the ability, where possible, to give their children a significant financial lift as and when they reach a certain age (normally 16, 18 or 21) is certainly a worthwhile cause. We are now seeing more...
Read MoreProperty company collapse could hit Lloyds bank
The collapse of the Kenmore Property Group, despite a £1 billion property portfolio, could hit Lloyds bank very hard with news that the bank has a £700 million exposure to the operation. The company is believed to have placed 21 subsidiaries into administration and two others into receivership despite the fact it has a substantial property portfolio. However, those close to the company expect Ll...
Read More