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.
Barclays bank announces £1.8 billion profit in the first quarter of 2010
In a further sign that the UK banking sector is most definitely over the worst, UK giant Barclays bank today announced profits of £1.8 billion in the first quarter of 2010. This compares favourably to profits of £1.24 billion in the first three months of 2009 after a major reduction in impairment charges and an increase in business. Impairment charges dropped from £2.31 billion to £1.51 billio...Read More
FTSE 100 ends a winning streak
The FTSE 100 today fell just under 40 points ending a five-game winning streak which has seen the index push above the level last seen prior to the Lehman Bros collapse. Mining stocks and banking stocks were the main losers today pulling the market down despite a number of sectors remaining fairly buoyant. It will be interesting to see how the markets react to a reduced trading period tomorrow bec...Read More
Barclays under pressure after toxic debt sell-off
Barclays bank is today under pressure after the announcement of a $12 billion Cayman Island deal which would see the bank's toxic debt transferred to an offshore company. We covered this particular deal in detail yesterday and the enormous figures which include $12 billion in toxic debt and $400 million in management charges paid over the next 10 years. So what is wrong with the move by Barclays b...Read More
Sir Alan Budd accepts a double dip recession could happen
Sir Alan Budd, the former chairman of the Office for Budget Responsibility, has today accepted that the UK economy could actually backtrack into a double dip recession. When questioned about the potential for a double dip recession in the UK, on the BBC Radio 4 "Today" program, he suggested that "our fan charts show it is a possibility" although he believes the UK economy is likely to continue to...Read More
Lawyer loses retirement case
Leslie Seldon, a former partner of Clarkson Wright and Jakes solicitors, has lost a discrimination case at the Court of Appeal with regards to the fact he was forced to retire at 65. It would appear that under the terms of this partnership agreement he was forced to retire from the company which he believed was a case of discrimination. However, the Court of Appeal has this week upheld the orig...Read More