Were huge banking loans within the rules?
Yet again the UK government and the Bank of England appear set on a collision course over the revelation that over £60 billion was loaned to Royal Bank of Scotland and Lloyds bank between October and November last year, at the height of the UK financial crisis. While these particular payments were never made public at the time there has been some concern within political circles that they may have been against the rules.
However, the UK government has today been rebuked by the Financial Services Authority (FSA) which has supported the stance of the Bank of England with the suggestion that the loans were well within the rules at the time. It is evident that there is a public backlash against the use of taxpayer funding, especially without the knowledge of taxpayers, and ultimately the UK government appears to be siding with taxpayers even though it was well aware of the loans at the time.
The UK government, the Bank of England and the FSA do not appear to be "singing from the same hymn sheet" at this moment in time and there is concern about disharmony in the camp. However, in reality the UK government has its hands tied because it cannot afford to upset voters as we approach the next general election.
Share this..
Related stories
RBS Raises Another £3.5 Billion
It seems that each week we hear about a possible additional asset sale at Royal Bank of Scotland as the group scrambles to shore up the ailing capital base of the main banking division. The latest move involves the sale of the company’s rolling stock operation Angel Trains to a consortium led by Babcock & Brown. The move is significant and brings an extra £3.5 billion into the groups oper...
Read MorePrivate equity giant applies for British banking licence
It has been revealed that US private equity giant Blackstone has applied for a UK banking licence and could become the latest in a long line of companies looking to take advantage of confusion and disappointment with the traditional UK banking arena. The company is one of the largest buyout operations in the world with experience in many areas of business and contacts aplenty. The rumour is tha...
Read MoreTesco staff share record payout from company share scheme
It is believed that more than 55,000 Tesco workers will be sharing a £144.4 million windfall as two of the company's employee share schemes reach maturity. In simple terms, every pound invested has now doubled in value due to the strength of the Tesco share price over the last five years. It is understood that approaching 10,000 employees saved the maximum £50 a month over the last five years un...
Read MoreElderly Finances Hijacked By The Government
While the government brought in an array of laws and regulations to ‘simplify’ the task of handing over control of the financial affairs of those who move into full time nursing homes or face prolonged medical treatment, they do not seem to be working. The so called Office of the Public Guardian (OPG) was set-up to ensure that the vital process of granting power of attorney over the a...
Read MoreLoan rates on a constant rise
In today's world it's getting much harder take out a loan with a reasonable interest rate, statistics have shown that around 50% of people applying for a UK loan will be instantly rejected down to their previous credit rating, job history and other important deciding factors. This percentage has been on a constant rise, especially within the last 6 months as companies are trying to stay away from...
Read More