Could government interference strangle recovery at Lloyds Bank and Royal Bank of Scotland?
As the UK banking arena continues to recover there are growing concerns that political interference and regulatory issues could slow down the recovery at Lloyds bank and Royal Bank of Scotland. Only last week the two companies reported better-than-expected figures but compared to others in the sector they are certainly not performing as well. Whether this is because of government and political interference in the background, regarding bonuses and funding, remains to be seen but there is no doubt that in order for taxpayers to obtain the best returns in the long term the groups need to be able to trade and operate at an arms-length basis from the UK authorities.
However, this is a very difficult situation because ultimately the government needs to use its influence with Lloyds bank and Royal Bank of Scotland to increase liquidity in the market place while also being seen to clamp down on excessive bonuses. Finding a balance between these two very important issues is not easy and could yet determine the future of Gordon Brown and the Labour government in the short term.
We have already heard suggestions from within Lloyds bank and Royal Bank of Scotland that reduced bonus payments have seen some of the companies top traders move elsewhere with others likely to follow in due course.
Share this..
Related stories
Glossary Of Investment Terms (B)
Balanced Fund
An investment portfolio which is diversified across a range of asset classes which typically include shares, fixed interest, property and cash.
Balanced Manager
An investment manager with experience in asset allocation and the supervision of portfolios containing a variety of different investments. The aim is to create a balanced investm...
Warren Buffett comes to the aid of Goldman Sachs
The ultimate investment sage Warren Buffett has surprisingly come to the defence of Goldman Sachs, bringing the US financial giant into his annual meeting speech for his investment vehicle Berkshire Hathaway. Despite the fact that Warren Buffett has been a longtime critic of some of the practices within Wall Street he is adamant that Goldman Sachs is only one of a number of companies caught up in...
Read MoreLord Turner issues warning to the European Union
Lord Turner, the chairman of the Financial Services Authority (FSA), has today issued his most direct warning yet to the European Union in relation to meddling within UK financial markets. He believes it is "vitally important" that the European financial supervisors did not intervene directly in the running of the UK financial markets or indeed the financial markets of any European countries. This...
Read MoreNorthern Rock Set To Announce Losses Of £500 Million?
While there has been a number of more positive financial stories in the press of late with regards to the mortgage sector, the latest rumours surrounding Northern Rock are suggesting that the group could soon announce losses of £500 million. The rumour mill seems to be in full swing because as well as supposedly set to announce a record loss the bank will also confirm that 'just' £19 billion of...
Read MoreLondon Stock Exchange trading halted
News that a computer glitch has halted trading on the London Stock Exchange since 8:44am this morning has not gone down well with traders. After the rise in the US on Friday and market increases in the Far East earlier today, demand reached fever pitch at the off in London only for a computer failure to bring the system grinding to a halt.
This could not have happened at a worse ti...