The FSA is today considering three applications for new bank licences in the UK which will see the sector increase in size and an increase in competition. While the FSA is unwilling at this point to name the three parties in question there is much speculation regarding their identities although nobody has yet stepped forward to confirm or deny the rumours.
The future of Northern Rock is shrouded in mystery today after the Labour Party issued a pledge in its manifesto which could see the company return to the mutual sector. It is believed that the Labour Party is in favour of allowing depositors to retain ownership of the company via a takeover by another mutual or indeed to encourage the likes of Richard Branson to adopt a mutual society model if he does acquire the business.
Richard Branson has today announced a new high-profile partner for his Virgin Money operation with US billionaire Wilbur Ross injecting £100 million for a 20% stake in the operation. The US investment guru has also promised to invest a further £500 million into a potential offer for Royal Bank of Scotland branches.
Gordon Pell, the former deputy to Sir Fred Goodwin at Royal Bank of Scotland, has today returned to the group after being appointed deputy chairman of the Coutts banking subsidiary. This comes despite the fact that he left Royal Bank of Scotland with a £580,000 pension after the clearout at the top of the management chain at RBS.
As Richard Branson announces a tie-up with a well-known American billionaire, Wilbur Ross, the big question now is whether he has the power and the strategy to break the stranglehold which the major banks have held in the UK for some time. The UK government must be praying for Richard Branson to be successful in his rumoured bid for the Royal Bank of Scotland branch network which would allow him to directly attack the leading figures of the UK banking sector.
The Irish authorities have tonight announced a plan which they believe will allow the Irish banking sector to rebase and regroup for the future. This comes after a dramatic time for the Irish banking sector which has seen a number of banks bailed out by the government and a number of controversies hit the headlines. So what is the government offering?
Last year saw the collapse of the Irish property market which led to weakness in the Irish financial sector and the eventual bailout of many banks in the Republic of Ireland. The National Asset Management Agency was set up to manage assets held by Irish financial institutions and the government took more of a hands-on approach with regards to the banking sector and financial services. So what is the government set to announce today?
As the UK government today announced news of a significant investment into the UK Post Office network, which will result in banking services becoming available up and down the country, these very ambitious plans are already under attack. In a bitter blow to the UK government it has been revealed that a joint-venture with Bank of Ireland will see the Post Office hand over 50% of all banking profits but that this is not the only problem for the UK government.
The UK government will today announce plans to expand and improve the 11,500 strong Post Office network in the UK. This comes just months after the UK government attempted to sell off a significant stake in the UK postal system and follows a period when hundreds of UK Post Office branches have been closed or downgraded. So what can we expect in the short term?
The influential Treasury Select committee has today reiterated its call for a radical reform of the UK banking system to prevent similar bailouts in the future. This comes despite the fact that the credit crunch, which eventually led to the worldwide recession, is an event which has only happened on a similar scale once in the last 100 years. There are also concerns that moves to reform the UK banking system could result in UK consumers paying more for credit lines.
