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.
Help to buy scheme extended for new homes until 2020
17/03/2014 House builders have been handed a boost by the government today as the chancellor announced that the first stage of the help to buy scheme will be extended until 2020, allowing a further 120,000 houses to be built. The first part of the ‘Help to Buy’ scheme is specifically aimed at helping people buy new build homes, and was originally expected to end in 2016. However, thi...Read More
Sir Fred Goodwin comes to the rescue of the regulators
When the going gets tough it seems that another attack on Sir Fred Goodwin fits the bill of diverting attention away from the UK economy and the UK regulators. Yet again, we have seen unconfirmed reports that Sir Fred Goodwin "employed" somebody at the Royal Bank of Scotland head office to fill cash machines with banknotes which only he had signed. While this has grabbed much attention in the medi...Read More
UK trade gap narrows in November
Figures from the Office for National Statistics show that the UK trade gap with the rest of the world narrowed from £7 billion in October to £6.8 billion in November. Analysts had been expecting a figure of around £7 billion so the reduction in the gap has been well received. But what does this mean for the UK economy? It is interesting to see that exports increased by 0.1% during November w...Read More
Public sector pensions in disarray
As many across the UK take time out to consider their own pension arrangements it has been revealed that the UK taxpayer will be taking on a significantly increased burden in the medium to longer term. Figures buried in the back of this week's budget showed a £2.3 billion shortfall in public sector pension payments which was covered by the Treasury using taxpayer's money. This was for the year 20...Read More
David Cameron announces plans for banking tax
In a move which is certain to attract controversy in the City of London, David Cameron has announced plans for a UK banking tax if his party gains power at the next election. He has dropped his earlier condition that international counterparts also adopt a banking tax, citing the fact that taxpayers need to be repaid for their financial assistance during the recession. While this makes perfect sen...Read More