Stockbrokers urge private investors not to ditch banking shares
Despite the fact that the UK banking sector is yet again at the centre of a controversial move by the authorities, stockbrokers in the UK have urged private investors not to ditch their shares. The US government has introduced not only a levy on the banking sector but also confirmed that the future size of banking institutions will be limited and some trading practices will be outlawed.
While so far the UK government has remained fairly quiet on the subject, many people believe that Gordon Brown and Alistair Darling will use the US blueprint as a means to increase the burden on the UK banking industry. As a consequence we have seen banking shares in the UK marked sharply lower this week although when you consider that UK taxpayers hold majority stakes in Lloyds bank and Royal Bank of Scotland, any increase in the taxation burden would be detrimental to the value of the share stakes.
The move by President Obama took many by surprise and indeed it looks as though the markets have been spooked by the move. How they react next week will be vital to the short-term direction of worldwide stock markets.
Share this..
Related stories
Kraft Foods in debt sell-off
Kraft Foods, recently confirmed as the proud owner of Cadbury, will this week be selling off debt to investors in tranches of no less than $1 billion. In effect the company is looking to refinance the debt it took on in connection with the Cadbury deal with the bonds expected to have a life of 3.25 years, six years, 10 years and 30 years. Investors in Kraft Foods recently saw the company's cred...
Read MoreWho will fall from the financial tree as it is shaken again?
When they shook the financial tree in the UK, Northern Rock, Bradford and Bingley and HBOS dropped off and many in Europe turned up their noses at the weak UK economy. Now they have shaken the tree in Europe it looks as though the whole thing could literally fall over and crush many European economies under its weight.
Iceland has now stepped forward to claim the prize of the worst...
Richard Branson shows his hand in banking sell-off
Flamboyant businessman Richard Branson has today confirmed that he would "be interested in looking at" UK banking assets which may or may not come onto the market over the next four years. It would appear that his off-shoot Virgin Money is considering potential offers for Royal Bank of Scotland, Lloyds bank and Northern Rock assets which look almost certain to head for the open market in the short...
Read MoreConservative party announces plans to abolish FSA
The Conservative party has announced plans to abolish the Financial Services Authority (FSA), should it gain power in the next general election, in a move which will significantly change the regulatory landscape in the UK. The closing down of the FSA would see all regulatory powers transferred back to the Bank of England which would take a more hands-on approach to regulatory issues in the future....
Read MoreOffice of Fair Trading to investigate rights issue fees
The Office of Fair Trading (OFT) has announced a formal investigation into rights issue and fundraising costs in the UK. It is believed that a number of parties have approached the OFT in the recent past and vented a number of concerns which have been taken on board. The investigation will look at the impact on consumers and investors from the current structure of rights issue fees and whether the...
Read More