Banking
FeedCo-op proves more popular than ever
Chris Wheal
Mar 18th 2010
Filed under: Company, Insurance, Banking
The Co-op has revealed its almost annual results this morning - 51 weeks instead of 52 - but will reveal greater detail of each of its businesses in about a week and a half. It has to publish its banking results today to meet regulatory rules.And the Co-op is basking in the glory, not just of a positive set of results but that fact that co-ops are suddenly all the rage among politicians of all parties.
Japan opens credit taps against deflation
Adrian Holliday
Mar 17th 2010
Filed under: Debt, Economy, Markets, Banking
Japan is to double the amount of cheap short-term loans to banks in an effort to fight deflation and bolster an economy that's failing to grow quickly enough. The Bank of Japan move will raise around 20 trillion yen, or £146bn. The Japanese government is desperately trying to fight deflation with core consumer prices still falling. This makes investors wary of investing further; demand simply falls away.
Big leap in new UK mortgage funding
Adrian Holliday
Mar 16th 2010
Filed under: Debt, Personal Finance, Mortgages, Banking
It's raining mortgages out there with a record 70% increase in mortgage products. Moneyfacts says that at the start of April 2009 there were just 1,209 UK products offered – that's now increased by 70% to a total of 2,053.
Scottish Widows bad debts rise
Chris Wheal
Mar 14th 2010
Filed under: Debt, Financial Crisis, Mortgages, Banking
Internet and telephone based mortgage and deposits bank Scottish Widows today announced pre-tax profits of £38.2m for the year, up 14% on last year. Total customer deposits were up £1.1bn at £3.8bn, up 40% on 2008. But its loan impairments soared 65%, or £2.4m to £6.2m. The company said this was low in industry terms and arrears figures were approximately one tenth of the industry average. But that rate of rising bad debt is scary.
Lehman report may lead to charges
Helen Fowler
Mar 13th 2010
Filed under: Economy, Markets, Financial Crisis, News , Banking
The report into the collapse of Lehman Brothers may lead to criminal cases against the investment bank's former executives, say legal experts.Court-appointed lawyers last week published a devastating report into the 2008 Lehman bankruptcy. One result could be charges under securities fraud laws, say legal experts quoted today by Reuters.
Ernst & Young in Lehman firing line?
Adrian Holliday
Mar 13th 2010
Filed under: Markets, News , Banking
Ernst & Young is battling to save its reputation as the investigation into the collapse of Lehman Brothers gathers pace – at last.City accountancy operator Ernst & Young is heavily criticised in a new report on the collapse of the investment bank giant, which could now pave the way for some pretty lethal - and protracted - lawsuits.
NY and the City clash: London falling
Chris Wheal
Mar 12th 2010
Filed under: Financial Crisis, Insurance, Banking
London and New York are level in the Global Financial Centres Index compiled by Z/Yen for the City of London Corporation for the first time because fears of "a regulatory backlash" and taxes cut London's score by 15 points."London has dropped 15 points in the ratings, from 790 to 775 points - the second largest drop in scores. New York has overtaken London in three of the subindices: Business Environment, People and Infrastructure," the report said. How worried should we be?
Banks continue to fail to lend to SMEs
Chris Wheal
Mar 11th 2010
Filed under: Financial Crisis, Banking
Banks' lending to small businesses in January was just £543m, up on the seasonally low December figure of £511m, but lower than November's £573m and down by nearly a quarter on the same month last year when banks lent £669m.Not only that, loans to small business fell by £151m and the rise was because the much more expensive overdrafts rose by £168. This is terrible. In my view, there are lies, damn lies and the British Banking Association's director of statistics. He - David Dooks - put a positive spin on these dire figures.
Banks aren't giving anything away
Lucy Tobin
Mar 11th 2010
Those banks - they're not charities, you know. Just in case you did think they were generous institutions, Moneyfacts, the comparison website, has got in touch to point out that the banks are quietly shaving off savings rates to fund cuts in mortgage costs."In order to maintain their balance sheets, providers can either offer competitive mortgage or saving deals, not both", Moneyfacts says.
BoE reports prices and economy fears
Chris Wheal
Mar 11th 2010
Filed under: Economy, Financial Crisis, Banking
The Bank of England's (BoE) February quarterly survey of public attitudes to inflation, found the pessimistic public expect inflation to rise, interest rates to rise and the economy to be weaker.Mind you the people they asked were numpties. Only 41% knew interest rates had fallen over the past 12 months (the survey was in February, 11 months after rates last fell). You can't take what that lot said too seriously.
Economy doing worse than suspected?
Helen Fowler
Mar 10th 2010
Filed under: Economy, Financial Crisis, News , Taxes, Banking , Election 2010
Could public finances be in even worse shape than already suspected? We already know the economy is in a bad way. Biggest peace-time deficit, banks on verge of collapse, triple A rating under threat etc. Now an influential report says the government underestimates the scale of difficulties. The report claims that additional tax rises or spending cuts of £20bn a year (over and above what we already know about) will be needed within three years. The government is also too optimistic in its economic growth predictions, suggests report author PricewaterhouseCoopers.
Card fraud down except in my wallet
Chris Wheal
Mar 10th 2010
Filed under: Credit Cards, Banking
New figures from the UK cards Association show that total fraud losses on UK cards fell by 28% between 2008 and 2009 to £440.3m - a decrease of £170m on the previous year's total. I am personally bucking that trend. I have another new credit card. My bank rang me to list some questionable transactions that had nothing to do with me and the old card was cancelled. One of my two cards - personal and business - gets replaced every year as a result of fraud.
AAA downgrade risk increases for UK
Adrian Holliday
Mar 10th 2010
Filed under: Debt, Economy, Banking , Election 2010
The Brown government needs to be clearer about its planned austerity measures. If it can't, then a downgrade of its AAA credit rating looms.That's the view of Fitch Ratings. Fitch says that though plenty of other EU countries are getting their debt priorities in ordier, the UK is lagging.
Rock losses narrow but bonuses are back
Adrian Holliday
Mar 10th 2010
Filed under: Debt, Economy, Loans, Mortgages, Banking
When you've made a £257m loss is it right to splash out on bonuses? For some, that would be an easy question to answer.Not for Gary Hoffman though, boss of Northern Rock. He's defending the decision to pay out bonuses because he claims Northern Rock is now £500m ahead of government targets put in place to turn the bank around.
Remove all financial safety nets - Myners
Adrian Holliday
Mar 9th 2010
Filed under: Debt, Economy, Financial Crisis, Banking
Let's remove the bail-out safety net. Let's start treating money as if it's something you could actually lose. Crikey, you mean, the government won't bail us out if we make a boo-boo? Even just one or two?
That's right. That was the crux of Lord Myners' Smith Institute speech last night to financial industry players: start behaving as if you really have something to lose.
Time is running out for ISA investors
NY and the City clash: London falling
Economy doing worse than suspected?
