Is George Osborne about to hit the UK banking industry?
Many believe that George Osborne will use his Mansion House speech this evening to launch a number of new initiatives aimed at the UK banking arena. He will warn them that they need to pay for the damage which "they inflicted" on the UK economy and indeed there will be talk of new banking taxes and a banking levy discussed.
It is also believed that many Liberal Democrat politicians are pushing George Osborne to instigate an investigation into integrated banking arrangements such as Barclays Bank, which operate both commercial banking activities and investment banking operations. Some of the more radical moves discussed include splitting commercial banking and investment banking into two separate entities thereby reducing the risk to an overall company from any one of these operations. This is not something which will go down well in the City where the likes of Barclays Bank, one of the integrated banking giants, has operated relatively successfully for many years.
Even though it may seem like a knee-jerk reaction to a once-in-a-lifetime event, i.e. the credit crunch, the UK banking arena could be about to change forever with many people concerned that the financial industry has become too powerful and too influential.
Moody's slashes debt ratings for UK building societies
The UK building society sector was today shaken by a substantial downgrading of debt across the board. A number of well-known UK building societies have seen their debt ratings slashed to junk bond status after a review by the credit ratings agency Moody's. While there have been issues with some building societies in the UK the reduction of some ratings to near junk bond status is a major blow.
Step one on the road to a Post Office bank
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 UK government is set to increa...Read More
Simple mistakes which are handing money to the banking industry
In these times of economic concerns it is vital that the UK public review their banking arrangements on a regular basis and ensure they are getting value for money and services which they actually require. While there are a number of common errors which increase the overall cost of UK banking services, we would like to highlight the following issues: -
Current accounts and overdrafts to experience hike in fees and rates
Customers of Lloyds TSB and Bank of Scotland (BoS) will experience rises in overdraft rates and current account fees from the 2nd October. The two banks, which are part of Lloyds Banking Group, will follow in the footsteps of Natwest, part of the same group, in raising the costs of banking with them. This will mean increases in overdraft rates which will rise by as much as 5%, and in some...Read More
RBS bank charge verdict document 'leaked'
RBS would look to return bank charges to customers if it lost an ongoing High Court case on the matter, a bank document has indicated.The statement, leaked to the BBC, shows that accounts that were "due a refund" would be "calculated as accurately as possible".Furthermore, the document adds, "any monies will be reconciled".The wording of the leaked statement suggests that RBS, which is involv...Read More