Santander announces 1900 job losses in the UK
Spanish banking giant Santander has today announced 1900 job losses in the UK across its three main UK businesses which are Abbey, Alliance & Leicester and Bradford & Bingley. The move comes at a time when many had hoped the UK banking sector was over the worst only for rumours of further state aid to start circulating and the £8 billion HBOS write-off being announced today. So is the UK banking sector under yet more pressure?
Even though the banking sector has received a multibillion pound rescue package over the last few weeks it would appear that some banks are in need of further capital injections to sustain their businesses in the short to medium term. While no names have been mentioned it would appear with the HBOS write off today that the group may still be feeling the pressure of the ongoing economic slowdown and it may take longer to bed down the business within the Lloyd's TSB Group.
As we have covered before, the government will need to introduce stricter agreements in exchange for further capital injections or risk a backlash from taxpayers who have been disappointed with the return from the earlier rescue package.
Share this..
Related stories
Kingfisher group warns that MFI will not be the last
Kingfisher group, the owner of B&Q, has stepped forward to suggest that the demise of MFI will not be the last major casualty on the UK high street. This is a damning indictment of the current situation in the UK and has analysts rushing for their red pens and cutting back a number of profit forecasts. It has also introduced a new guessing game with many investors now trying to find the next major...
Read MoreUK corporate bankers seek protection
In light of the attack on the home of Sir Fred Goodwin a number of leading UK bankers have requested security as fears grow of an increasing backlash against the financial sector. While there is no doubt that the financial sector has played a significant part in the downfall of not only the UK economy but the worldwide economy, the UK government for one has been very eager to pass the buck.
...
If the European Union won't bail out Greece then who will?
As the Greek saga continues to worsen there is concern that if the European Union is unable or unwilling to help in the short to medium term then who else can the Greek authorities turn to? While it is likely that the European Union will cut Greece adrift, with analysts expecting some form of financial assistance in the short term, we also have the International Monetary Fund waiting in the win...
Read MoreMoney markets take fright after news of Lehman Brothers demise
There is a feeling of 'déjà vu' in the money markets this morning as news that Lehman Brothers has filed for bankruptcy hit the news wires. While not wholly unexpected after recent suggestions that each and every attempted rescue package was floundering it is still a shock to see a bank with over 150 years of history literally disappearing in the space of a few days. So what does this mean...
Read MoreUS banking shocks impact on UK banking sector
It appears that the sudden demise of the Barclays bank share price in the last hour of trading on Friday was a consequence of difficulties in the US where their banking system has again come under severe pressure. This together with the fact that many UK banks are looking to cut costs in the short term, obtain further funding from the government and basically batten down the hatches yet again woul...
Read More