Lloyds Bank fails to agree toxic asset insurance deal
It has today been revealed that Lloyds Bank is no nearer an agreement with the UK authorities with regards to its toxic assets from the combined Lloyds Bank and HBOS group. While the amount of toxic assets in question is less than half of that which has already been agreed with the Royal Bank of Scotland there appears to be some problem on the side of the UK authorities. There is speculation that Lloyds Bank has been asked to pay a fee which is the equivalent of 3% more than that which the government agreed with Royal Bank of Scotland although nobody is quite sure why.
The last few days have seen rumours of political bias towards the Royal Bank of Scotland which has apparently left other UK banks struggling to arrange the same terms for their own toxic asset insurance deals. The fact that Royal Bank of Scotland has already taken up over £350 billion of the planned £500 billion programme is a major concern with suggestions that other banks could be left high and dry in these difficult times.
However, the recent collapse in the Lloyds Bank share price could force the hand of the UK government and make a difficult situation ten times worse!
Share this..
Related stories
Can we trust what the politicians are promising ahead of the election?
Over the last few weeks it has become apparent that many MPs and political parties will do whatever it takes to grab the attention of voters and ensure that you put your cross next to their name on the ballot paper. We have seen u-turns, we have seen changes in policy and we have seen a whole mix and match of comments, headlines and strategy changes. But can we really trust any of the politicians...
Read MoreIs it fair that Tony Blair is still benefiting from his time in office?
Yesterday's revelation that Tony Blair has signed a six-figure deal with Lansdowne Partners which will see him deliver four private speeches to the company's employees has prompted a very difficult and very controversial argument in the marketplace. Should leading political figures be allowed to use the contacts they built up during their time in office for personal gain after leaving the governme...
Read MoreConservative government would reduce the power of supermarkets
The Conservative Party has confirmed it would bring in a so-called "supermarkets tsar" to oversee the supermarket sector if it is successful at the next general election. The idea would be to force supermarkets to pay a fair price for produce from suppliers and indeed keep a very close eye on their power and influence not only in the retail market but also on local economies. For many years the...
Read MoreDollar sinks after ECB rate cut surprise
It has been well known in the market for some time that the ECB (European Central Bank) was looking to cut European interest rates. However, today's announcement of a quarter point cut, to 1.25%, has shocked many with the vast majority of analysts expecting a half point cut. The result was an increase in European currencies and a weakening of the dollar on currency exchange markets. The situation...
Read MoreWho will pay the eventual cost of the £3.5 billion write-off?
The Bank of England report this week which suggested that UK banks and building societies have written off £3.5 billion of consumer debt between April and June 2010 has shocked many people. Aside from the fact it is a concern that UK consumers are so heavily mired in debt it is also a surprise that the banks have agreed to write off such a large level of debt. But who will pay the eventual cost?...
Read More