Mervyn King Set To Call The Shots
As a follow-up to our article on calls from Mervyn King for UK banks to participate in a new compensation scheme for the financial industry, the governor of the Bank of England has hinted that emergency finance will be more costly in the future. It seems as though the Northern Rock saga has started a movement towards a new regulatory regime which will be announced in the autumn.
Mervyn King seems to be putting the onus back on the banks to ensure that their own house is in order before trying to ‘tap’ the government and Bank of England for emergency finance. He has already commented upon the high level of bonus payments in the financial sector, the need for restraint and the recent abandonment of sensible loan and mortgage criteria – something which many believe has led to the current worldwide situation.
The authorities seem to have a tough task on their hands, trying to squeeze more money out of the banking sector, but this seems to be the new approach. Many believe that the public backlash to the ‘obscene’ amounts loaned to Northern Rock has prompted the new approach, one which seems a little more tax payer friendly.
Share this..
Related stories
Citizens Advice reports increasing mortgage distress
More and more people are contacting Citizens Advice after falling behind on their mortgage payments, the charity said today.According to the new data, advice requests for mortgage arrears have increased by 50 per cent over the past 12 months.Citizens Advice also said that there had been a marked upwards trend in energy bill distress.Around ten per cent more are reporting trouble with their gas and...
Read MoreNational Savings certificates are 'risk-free investment'
National Savings certificates offer investors a guaranteed return and are an ideal investment opportunity at this time of financial instability, a financial advisor has claimed. According to Jason Butler, a partner at Bloomsbury Financial Planning, the certificates represent a risk-free investment and are consequently highly recommended amid projections of financial turbulence in 2008. He said: "F...
Read MoreOPEC acts to cut oil production
News that OPEC has cut oil production by some 1.5 million barrels a day, to try and shore up the oil price, has had little impact as yet. The price of a barrel of oil is now down as low as $64 having reached a high or around $150 earlier this year. It seems that finally we are seeing the world wide recession bite into industry's appetite for the black gold and there will no doubt be many traders...
Read MoreMax Clifford believes Sir Fred Goodwin's life is at risk
PR guru Max Clifford believes that Sir Fred Goodwin's life could be in danger from extremist groups in the UK. As we have covered extensively on the website, Sir Fred's refusal to give up any of his alleged £17 million pension fund has caught the eye of the financial press, the UK government and UK taxpayers. The last few days has seen the home and car of Sir Fred Goodwin vandalised and various t...
Read MoreHave we seen the end of the final salary pension scheme?
Over the last few weeks there has been significant change in the final salary pension scheme sector with more and more companies looking to close these lucrative schemes and transfer to money purchase schemes. The ongoing difficulties with the UK economy have led to a significant drop in the value of pension scheme investments which has created a growing gap between pension liabilities and pension...
Read More