Mervyn King turns on the bankers
Mervyn King, the governor of the Bank of England, yesterday hit back at the UK banking profession and admitted that UK regulators missed an opportunity to clamp down on excessive bonuses and remuneration packages during the depths of recession. As we covered in one of our earlier articles, Mervyn King was most certainly in apologetic mood yesterday and appeared to be attempting to curry favor with the unions.
Despite the fact that a number of union representatives turned their backs on the Mervyn King and walked out of during his speech he was given a far better reception than many had expected. When the governor of the Bank of England turns on the UK banking community then we know that the sector is most certainly public enemy number one. Quite why Mervyn King has taken this particular stance at this particular moment in time is something which is slightly puzzling.
However, the bottom line seems to be that the UK banking arena has been cut adrift more than ever before and historic friends that have defended the sector now appear to be turning against it. Whether the introduction of Mervyn King to the mix will make the UK banking arena think again is something which many people will be considering.
European Investment Bank approves $1.2 billion car industry loans
In a move which has been presented under the auspices of a green revolution in the European car industry, over $1.2 billion in loans have been cleared for EU car manufacturers. With the proviso that the funds are used to cut CO2 emissions and release cleaner cars to the car market, many car manufacturers will be relieved to say the least.
The likes of Nissan, Volkswagen and Jaguar L...
The great US bailout - the plus points
As news starts to filter through that the US government is currently putting together a huge rescue package which will see the authorities' takeover literally hundreds of billions of defunct investments and loans, what are the consequences?
The plus points :-
The bailout is being quoted in the hundreds of billions of dollars bracket and is set to see liquidity return...
LGA criticises energy providers over dividends
The UK's largest energy firms gave their shareholders £1.6 billion in dividends last year, a rise of 19 per cent on 2006.This revelation, contained in a new report commissioned by the Local Government Association (LGA), has led to strong criticism of these firms.The £257 million dividend rise comes despite the energy providers previously claiming that their increased profits were ploughed back i...Read More
AIMA Calls For Clarification Regarding Short Selling Rules
In the light of the ongoing crisis in the UK financial sector the Financial Services Authority (FSA) recently released new guidelines to counter what they see as the growing threat of short selling – the sale of shares not already owned with the intention of buying back at a lower price. The Alternative Investment Management Association (AIMA) has asked the FSA for clarification of the situ...Read More
US banks still require billions of dollars in funding
Despite rumours that the US banking sector has as a whole escaped relatively unscathed from ongoing stress tests, it would appear that a number of high-profile banks will need significant capital in the short term. The American authorities have given these banks up to one month to raise the additional funding required after a constant drip feed of information to the markets. The aim of drip feedin...Read More