British Co-operative Bank had been warned nearly two years back that it was not in a position to acquire hundreds of branches from part-nationalised lender Lloyds Banking Group (LBG), Bank of England Deputy Governor Andrew Bailey revealed.
Mr. Bailey, deputy governor for financial stability at the central bank, told the Treasury Select Committee that the regulator had raised serious concerns over Co-operative Bank's capability to buy 632 branches of Lloyds in 2011.
Royal Bank of Scotland (RBS) is on track for a partial privatization sometime in 2014, the part-nationalized lender's chairman Sir Philip Hampton said.
The government has acquired 81 per cent stake in RBS after bailing it out at a cost of £45.5 billion at the peak of economic crisis in 2008.
Sir Philip stressed that returning of the government-owned lenders to private hands was crucial, and it should be done as soon as is practically possible.
Lloyds Banking Group CEO Antonio Horta-Osorio came under more pressure to forsake his bonus after the Financial Services Authority (FSA) slapped the lender with a fine of £4.3 million for failing to pay compensation to payment protection insurance (PPI) mis-selling victims in time.
The FSA yesterday fined Lloyds for failing to compensate around 140,000 PPI mis-selling victims promptly. The watchdog said that thousands of those victims who had to wait for several months for compensation should have been compensated within 28 days.
Measures taken by the UK Government to revive the ailing economy have made life extremely difficult for savers and pensioners, but the measures like quantitative easing (QE) were necessary to save the broad economy, the incoming Governor of the Bank of England (BoE) said.
Mark Carney, who will become BoE's governor in July this year, said that all-time low interest rates have hit prudent households very hard, with pensioners among the hardest hit.
No bank is too big to fail, and banks that will try to ring-fence their risky operations with savers' deposits, Chancellor George Osborne declared on Monday.
In his speech ahead of the publication of the banking reform legislation, Mr. Osborne said Britons' anger over the errant and reckless lenders was real as the country had paid a higher price than any other major economy to bailout its banking system. He was speaking at the Bournemouth-based offices of US lender JP Morgan.
Chancellor George Osborne will reportedly threaten big banks that they would be broken up in case they flout new rules designed to prevent another bailout of the financial system at a huge cost to the taxpayer.
The new rules intend to prevent banks from ring-fencing their risky operations from savers' deposits. The new legislation will provide the new banking watchdog with powers to punish banks that will fail to split their high street branch operations from the dealing floor.
A total of ten lending giants, including Bank of America and JPMorgan Chase, on Monday hit an $8.5 billion mortgage foreclosure settlement deal with federal banking regulators.
The settlement, which concluded weeks of negotiations between the federal regulators and lenders, is intended to put an end to a troubled foreclosure review of several thousand of loan files that was directed by the regulators.
According to reports, UK's biggest five banks, recently announced that in the past three months, they have extended their plans to provide loan to UK companies.
However, all the five bank’s officials declared that the main aim behind this move was that they strongly wanted the UK’s economy to come back on the right track, as the current monetary problems extension problems, forced the government targets to become still.
The result season has gained momentum and now all eyes turn to Lloyds and RBS. Next week these two part-nationalised banks will take their turn in the spotlight as they will announce their annual results.
Barclays has already announced its annual financial result and there has been hike in its net profit. It has said that the annual net profit of the firm has gone up by 32%.
It has been unveiled by Barclays that it had paid just £113m as corporation tax for the year 2009. It has also informed that the company had posted pre-tax profits of £11.6bn.
Its bills were low because it had made losses on bad loans. This has been claimed by the bank today. This information was released in a letter which was given by chief executive Bob Diamond to Chuka Umunna. He is a member of the Treasury Select Committee.
On Wednesday, Societe Generale SA announced that during the fourth quarter of this year, it saw the net profit quadrupling as compared to the previous year mainly driven by its continued recovery from the economic downturn and that has been possible because of the retail banking side. Even its corporate investment side has seen a rebound and the bad loans are going down.
The French bank is the second biggest lender after BNP Paribas SA. SocGen has also confirmed that it has managed to achieve the target set by it and saw its net income at around EUR6 billion in 2012.
An explanation is needed from Bank of England to tell as to what was the reason behind their underestimation of steeply rising inflation. The VAT rates are going up and so is the price of oil. Commodity prices along with food ones are not very different.
That is the reason why the consumer price index (CPI) has reached a rise of 4 per cent. This is worrying since the figures are double of what had been expected this time. Even the Retail Price Index (RPI) has seen a rise and is up between 4.8-5 per cent. This index also includes the house prices.
Project Merlin, has been finally joined in by the four largest banks in UK. These are the HSBC, Barclays, RBS and Lloyds and the information was given by George Osborne to the House of the Commons.
If the project is able to rebuild the bank's relationship with the society, then its objective will be solved and that it is certainly going to be a good news. But there are stipulations in it that may make it unattractive.
The whole idea of rip-off charges is going to be investigated. These are the levies that are imposed by airlines, cinemas and even government agencies on customers when they make payment through plastic.
At present, the banks are charging businesses juts 10p for debit card sale, but the companies and retailers are allowed to charge close to 50 time of that amount on the customers. Moreover, there are complaints where firms have been said to be inflation the processing fees so that they can make profit out of it.
Time is running out for the Governor of Bank of England Mervyn King in the wake of the weakness in the economy forces policy makers to endure rising inflation and abstain from raising rate of interest.
With sixty two economists in a Bloomberg News survey mentioning, that the bank will leave its benchmark interest rate at a record low of 0.5% today, investors have added to bets on a rise in the former year half. According to ex-rate setter DeAnne Julius the bank
requires to make the policy tight sooner than later or else have a threat of losing its credibility.
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