UK government details loans under RBS insurance scheme
The UK government has today issued details of the Royal Bank of Scotland's participation in the asset protection scheme and there is some concern about the make-up of the loans in question. More than half of the £280 billion of loans in the scheme have been agreed with foreign entities, something which is causing concern within the UK government. In reality, the UK taxpayer is paying to ensure loans which were agreed with foreign entities.
The massive document which details the RBS participation in the scheme also confirms that the UK government has the power to "parachute in" experts if it believes that the loans in question are not being managed correctly. Nobody quite expected the amount of detail which has been published and indeed there will be some embarrassment to those involved in the loans in question.
The Royal Bank of Scotland's entry to the scheme is funded by the UK taxpayer and will see the government's share stake in the business increase from 70% to 84%. It is also believed that the UK government has obtained the authority to block any staff bonus payments from Royal Bank of Scotland although whether this particular power will be used in the short to medium term is open to debate.
'Delay' on PPI recommended
Consumers should not be sold payment protection insurance (PPI) within 14 days of buying a loan, the Competition Commission (CC) has announced.PPI is designed to allow people to still repay loans even if they suffer a loss in income or health.However, the CC said that the "vast majority" of the 13 million PPI policies in the UK are sold to customers at the same time as they take out their loan.Thi...Read More
Is the EU expansion policy fatally flawed?
The ongoing problems in Greece and potential issues regarding Spain and Portugal have highlighted the major expansion push instigated by the European Union over the last few years. This is a policy which has seen many relatively small countries join the European Union and tap into additional funding to finance changes within their own boundaries. However, was the European Union too quick to hand o...Read More
Do Alistair Darling's Numbers Add Up?
The Chancellor Alistair Darling has revealed that the government is working on a financial package which they hope will kick start the housing market and ultimately the economy. On today's BBC Radio 4 show he was interviewed about the state of the UK economy and exactly what he planned to do. While he did not reveal any specifics he refused to rule out a suspension of stamp duty on house purchas...Read More
Payday loan regulations may be detrimental to consumers
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FTSE 100 closes under 4000 level as concerns mount
The FTSE 100 index today closed down just over 100 points at 3990.86 amid concerns of a possible stalling of the UK recovery and depressing news from America. As we touched on in one of our earlier post, the Bank of America released figures which on the surface seemed fairly upbeat only for one-off gains and a substantial increase in debt provisions to take the gloss off the announcement. The rath...Read More