U.K. authorities deny plans to nationalise Lloyds Bank
That the UK authorities have come out with a firm statement regarding the future of Lloyds bank and confirmed there are "no plans" for an outright nationalisation of the group. The wording is interesting because while many investors and analysts believe a full nationalisation is not far away, it appears inevitable that the UK taxpayer will be forced to increase its stake in the ailing group.
There have also been a number of suggestions that should Lloyds Bank be taken under government control it will effectively be open season for the other banks in the UK. Lloyds Bank is far more influential than the likes of Bradford & Bingley and Northern Rock, which have both been taken under government control over the last few months. While there do not appear to be any major issues at the moment regarding other UK banks, with the only possible exception being Royal Bank of Scotland, there is no doubt that times are still very tough.
The speculation regarding Lloyds Bank and its future has come on the same day that the group saw its Triple-A credit rating removed by Moody's as a direct consequence of the group's exposure to HBOS. The increase in the cost of finance is just another hurdle that the group will need to overcome if it is to stay in public hands.
Share this..
Related stories
FSA set to increase fines by up to 300%
In a sign of the times, the Financial Services Authority (FSA) has today issued proposals with regards to a significant increase in fines and penalties for those found guilty of market abuse in the future. If the proposals become law we will see fines increased by up to 300% and individuals in line for a minimum £100,000 fine if found guilty in cases of market abuse.
The broad fram...
Is the government right to look at selling off bank share stakes?
Today's announcement by the OFT (Office of Fair Trading), that the UK government should effectively disinvest various banking share stakes as soon as possible, has been backed by many investors and consumer groups. However, even though the UK government itself has been looking towards potentially selling off the sizeable banking stakes Gordon Brown is in a very difficult situation.
...
Is the Treasury taking over UK financial regulations?
Storm clouds are gathering over the Bank of England with the news that Mervyn King was not consulted by the Treasury with regards to an array of imminent changes to the regulatory system. There is no doubt that the relationship between the Treasury and the Bank of England has been very strained of late and this latest announcement, which has infuriated the Treasury, will certainly not help the sit...
Read MoreCBI calls for wage rises and more free childcare
10/11/2014 The Confederation of British Industry (CBI) believe more free childcare and tax cuts for the low paid are two of many measures that are needed in Britain to raise living standards. The CBI represents 190,000 businesses in Britain and is having their annual conference in London this week. The UK living standards and Britons place in the European Union (EU) are believed to be the i...
Read MoreBarclays bank staff on the verge of striking
After the recent announcement that Barclays bank is to close down the company's final salary pension scheme to new entrants and transfer those existing members to a hybrid cash pension scheme, an informal poll by the Unite union has indicated 92% support potential strike action. While to some extent Barclays bank was forced into the proposed change to the pension scheme, with a £2.2 billion defic...
Read More