Royal Bank of Scotland joins UK asset protection scheme
Despite attempting to wriggle off the hook, which is the UK government's asset protection scheme, the Royal Bank of Scotland has been forced to sign up and confirmed that this happened on 26 November. While there's no doubt that the scheme will protect the company's assets in the short to medium term, like Lloyds bank, the company had been attempting to negotiate an exit rather than pay the multibillion pound premium.
In a bizarre quake of fate, if the UK economy does take a further downturn, as some people believe it will in 2010, the scheme will become vital for Royal Bank of Scotland and Lloyds bank may well have made a mistake negotiating its own exit. The agreement which was signed by Royal Bank of Scotland is conditional upon approval by Royal Bank of Scotland shareholders and overall approval by the European commission which is now heavily involved in the UK banking sector and the restructuring of businesses such as Lloyds bank and Royal Bank of Scotland.
Now that the saga surrounding the asset protection scheme looks to be over there are hopes that the Royal Bank of Scotland management can look ahead to the future even though markets are still very difficult. This is a company which was the largest banking operation in the world at one stage, after a massive expansion programme, but has now come back down to earth with a bump and will need to rebuild from a very low base.
UK government support for electric car market
After a period of relative uncertainty regarding the future of electric cars in the UK, the UK government has today reiterated a subsidy programme introduced by the Labour government which will see up to £5000 handed over to those who acquire an electric car, a plug-in petrol/electric hybrid or a car powered by hydrogen fuel cells from January 2011. There had been concern within the UK car mar...Read More
Will mortgage changes drag the housing market lower?
Since the UK authorities stepped forward with a number of proposed changes for the UK mortgage market there has been much debate as to the overall impact this will have on the housing market. Some experts believe that up to one in five potential mortgage applications, and remortgage applications, could be effectively dead in the water leaving 2 million borrowers with no source for mortgage finance...Read More
UK government renames pension initiative
The UK government made some amendments to the "Personal Accounts" pension system which has now been rebranded as the "National Employment Savings Trust" otherwise known as Nest. This is the government's initiative to try and head off the ever-growing and ever more critical pension crisis which is gripping the UK at the moment. This is a crisis that has been building for many years but which has no...Read More
Has the OBR been saved?
The announcement that Robert Chote will take on the new role as head of the Office for Budget Responsibility (OBR) has injected some new life into what was potentially a banana skin for the UK government. After a relatively smooth transition from opposition to government, George Osborne announced the creation of the Office for Budget Responsibility with the criteria that it would operate at an arm...Read More
Mervyn King backs radical changes in UK banking sector
Mervyn King, the Gov of the Bank of England, has today come out in support of Pres Obama's drastic move to control and restrict the power and growth in the worldwide banking sector. He believes that the UK needs a "safer and more robust banking system" and believes Pres Obama's move will prompt a wider debate about the pros and cons of the worldwide financial sector. If we take a step back to w...Read More