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.
Tesco to create 800 jobs in finance division
In a bid to grab a significant share of the UK finance market, Tesco has announced the opening of a banking call centre in Glasgow and the creation of 800 jobs. In a further direct attack on the UK banking sector the company will be rebranding its Tesco Personal Finance division as Tesco Bank and will in due course increase the number of products available in the UK.
This is an inte...
Cash machine fees withdrawn for UK's poorest
After research into machine withdrawal habits, it was found that over 300 areas of the UK had no access to fee-free cash withdrawals, reported Link, the firm responsible for running cash machines.Under new law, which allows banks to offer cash machine companies financial incentives in return for installing fee-free cash machines, poorer communities are set to benefit.Plans for 362 non-charging cas...Read More
Alistair Darling to meet City bankers in Davos
Alistair Darling will meet an elite band of City bankers in Davos on Friday amid concerns that the UK government, and the US government, are hitting the financial sector too hard and will hold back a recovery in the worldwide economy. The UK government's windfall tax, a call for a new Tobin tax and the US government's banking tax levy has certainly caused concern within the financial markets and i...Read More
Will Royal Bank of Scotland directors call the government's bluff?
The UK government is on a collision course with Royal Bank of Scotland directors who have previously suggested they would consider a mass resignation if the authorities meddle in banking affairs. We are now at the intriguing scenario where potentially a battle of wits between the government and the Royal Bank of Scotland, and potentially Lloyds bank directors, could be about to explode in the New...Read More
Is HBOS planning significant branch closures?
It has been revealed in the weekend press, although as yet unconfirmed, that HBOS (now part of the Lloyds bank group) is looking to close around 300 Halifax branches. As we covered in one of our recent post, slowly but surely HBOS has been reducing its exposure on the UK high street with a fairly slow and fairly low-key closure of some branches. However, the revelation that up to 300 branches may...Read More