Bradford and Bingley Saga Drags The Banking Sector Lower
While only a couple of weeks ago a number of analysts had been warning that the UK banking sector was still in serious trouble, these fears seemed to have been dismissed by many. However, the Bradford and Bingley story has seen the sector back in the headlines for all of the wrong reasons. While Bradford and Bingley shares fell to an all time low of 66p we also saw HBOS forced to issues a statement to the market claiming that their rights issue is still on track.
Many people seem to forget that the main component of any banking sector is trust and certainty. There are some analysts who are now seriously concerned that the trust and security in the UK sector is starting to ebb away at a time when it looked as though the sector may have bottomed out. The malaise in the UK banking sector is dragging the whole London Stock Market lower and there are worries that we may see the cost of finance increase yet again for commercial banking operations.
The next few weeks are vital for the sector with the Bradford and Bingley and HBOS fund raising exercises on a knife edge. Times are still very tough in the UK banking sector.
Share this..
Related stories
Is the small business sector dead?
While the headlines are currently dominated by the larger companies in the UK and the torrid time many are experiencing in the current downturn there is little mention of the small business sector. However, there are still many small businesses which are proving very successful even in these difficult times as very often they are able to cut costs to the bone quicker than their larger counterparts...
Read MoreCadbury takeover turns nasty
This weekend has seen a stinging attack on Cadbury directors by the chairman and chief executive of Kraft Foods, Irene Rosenfeld. In a move which is almost certainly premeditated, she has accused the Cadbury board of directors of "not doing the maths" amid signs that this potential takeover is becoming more and more acrimonious. The fact that Cadbury directors appear more interested in keeping the...
Read MoreBank of England had £150 billion emergency fund in place
It has been revealed this weekend at the Bank of England had an emergency fund in place which totalled £150 billion. Just over £60 billion for this particular fund was used to shore up Lloyds bank and Royal Bank of Scotland at the height of the financial crisis last year but news that the bank had a further £90 billion to hand shows how difficult the situation had become. Slowly but surely w...
Read MoreIs the government being railroaded into supporting Jaguar?
The UK government is this evening under intense pressure from both the owners of Jaguar Land Rover as well as unions throughout UK to forward a £500 million loan to the company. There are suggestions that behind-the-scenes pressure is starting to build and the government looks set to give in with a further injection of taxpayer's money into the ailing UK economy. Quite what the terms and conditio...
Read MorePension reforms- the difference between guidance and advice
16/03/2015 Are you clued up on the pension reforms, which are coming into place this April? No? Well, to help with these new pension changes, the Treasury has created a brand new guidance service called Pension Wise. This service is a free and impartial government service that aims to help people understand the new pension options. In the past, if you wanted to talk to someone about you...
Read More