UK Banks under pressure to pass on future rate cuts to customers
Peter Mandelson today joined calls for the UK banking sector to pass on interest rate reductions to customers as soon as possible. The banking sector in the UK is now under immense pressure to deliver cost reductions across the board although there seems to be a growing reluctance to do this as soon as possible. With a further interest-rate reduction expected this week there will be growing pressure on the banking sector to show some kind of solidarity in the fight to refloat the UK company.
There is a growing resentment among taxpayers to the fact that the banks have been bailed out to the tune of hundreds of billions of pounds while taxpayers are left to carry the can and the increased costs associate with the mortgage industry. This gives the impression that the government has bent over backwards to assist the banking community while leaving taxpayers in the cold and literally billions of pounds worse off.
The government will need to find some common ground between the banks and consumers in order to assist with their ongoing improvement in the eyes of UK voters. Unless they can do this fairly quickly there is every chance that this could cause more harm than good for the government in the long-term
Share this..
Related stories
UK Treasury looking to slim down Lloyds bank cash call fees
The UK government is said to be on the verge of agreeing a £10 billion rights issue by Lloyds bank but the government is not happy about the size of fees which will go to advisers and underwriters. Yesterday there was talk that the issue would cost Lloyds bank in region £300 million and the government is said to be furious at this figure which they believe is grossly exaggerated.
...
CBI raises doubts about UK economic recovery
The latest quarterly survey from the CBI has highlighted the fact that many UK banks and building societies believe that the recent increase in lending will collapse in the first quarter of 2010. While many people are becoming more and more confident about the UK economy, due to the fact there has been an increase in lending over the last six months, many banks and building societies believe that...
Read MoreSir Fred Goodwin retires on £650,000 a year
There has been dismay in the Houses of Parliament at the revelation that Sir Fred Goodwin, the former chief executive of Royal Bank of Scotland, is already drawing his £650,000 a year pension despite the fact he is only 50 years old. This pension payment is funded by a £16 million pension pot which has been regulated during his time in the banking industry. While the Labour government has vowed...
Read MoreLabour and the Unite union
Despite Gordon Brown's very public outcry against the Unite union and the forthcoming British Airways strike activity, many journalists are now picking up on the very close relationship between Unite and the Labour government. Former Labour Party spin Doctor Charlie Whelan is at the head of the Unite union and many believe today's public relations stunt by Gordon Brown was exactly that, something...
Read MoreUK taxpayers vent fury at Chancellor Of The Exchequer
Alistair Darling, the Chancellor of Exchequer, has set himself on a collision course with UK consumers after his comment that "UK consumers should learn to live within their means". This comment comes at a time when the UK government is literally wringing every penny it can out of the UK tax system to bail out the UK bank system and increase the U.K.'s funding to the IMF. However, does Alistair Da...
Read More