Why do the UK banks need further funding?
While there is no doubt that the UK economy continues to crash and burn, there is very serious debate across the country as to why the UK banking sector requires special attention and massive funding yet again. There is an argument that many of the problems being experienced by the banking sector have been brought on by greed over the last decade which has seen the quality of loan books reduced and profit margins get tighter and tighter.
When you compare this against many other areas of the UK economy which are struggling through no fault of their own there is a growing rejection of the call for further funding for the banking sector to the detriment of everybody else. When you consider that the UK banks initially suffered because of the sub-prime mortgage market collapse, which many people saw coming, and now appear to be suffering because of an overextension into the commercial property market, who really is to blame?
The recent refusal of a number of financial institutions to pass on future base rate cuts to their customers has further inflamed the situation and emotions are running very high. The UK government will need to put forward a seriously strong argument to get the backing of the UK public.
Share this..
Related stories
Are the hedge funds next to fall?
It has been suggested that while the worldwide banking system is starting to stabilise again, we may be in for further shocks in the financial industry. If predictions are correct there are a number of high profile hedge funds on the verge of going under and once the first one goes we could see a number of others taken down at the same time.
While traditionally hedge funds have bee...
EU hedge fund restrictions could be softened
As the Swedish presidency of the EU comes to a close there are plans to water down the recently announced regulatory restrictions on hedge funds and private venture capital companies in Europe. This is an issue which has hit the UK financial sector very hard and indeed Boris Johnson, the Mayor of London, recently confirmed his concerns regarding additional funding requirements which could see hedg...
Read MoreWill the rich in the UK really pay the 50% higher tax rate?
Sometime ago the Labour government decided that the best way to give itself a fighting chance at the next election was purely and simply to tax the rich and attack the banking community. As a consequence we saw the introduction of the 50% tax rate on income over £150,000 a year which the government initially forecast would raise in excess of £1.1 billion in additional revenue per year. However,...
Read MoreIs Prudential about to cut ties with the UK?
Despite the fact that the Prudential has links with the UK going back to 1848 it is believed that directors of the company are currently considering a sale of the UK business. This is a shock for many analysts who believed that the Prudential would be based in the UK forever and a day. So why the potential change in policy? The rumours about a potential sale of the UK business centre round the...
Read MoreBrits 'not saving enough'
Only a quarter of Britons currently think they are putting enough in their savings, according to new research.A survey by Nationwide Building Society found that the future was more optimistic however, with more than half (52 per cent) believing they will be saving enough in six months.This was an increase of five per cent compared to the same survey last month, which Nationwide believes is positiv...
Read More