The government of Ireland has decided to break up the nationalized Anglo Irish Bank in order to improve the bank's condition. According to the finance ministry, the failed bank will be divided in to two divisions that are a funding bank and an assets recovery bank. Although the asset recovery division will get a banking license, it will have to focus on managing the existing loans given by the bank.
The investors of Barclays wanted extra number of non-executive directors in the board for strengthening the board to ensure a better balance of power when Bob Diamond joined as the chief executive of the company.
The investors said that they have welcomed the appointment of Bob Diamond as the chief executive of the bank which would help the bank to improve. Meanwhile, they expressed their concerns that Mr. Bob would be a very dominant boss and harder to handle than the former boss John Varley.
The Santander bank has said the smaller business organizations are being denied for loans for high street banks because the rules of the Financial Services Authorities (FSA) are too rigid. The Spanish bank Santander will acquire 8% of the total business lending market of UK after taking control of 318 branches of Royal Bank of Scotland in next year.
The bank has cleared that it would not allow its bank managers to lend money to the small business companies because of the rules and regulations of FSA.
In a bid to assist the customers midst of the troubling aftermaths of the earthquake in Christchurch, many banks have reportedly unveiled a wide array of packages for them at the weekend.
"We understand the financial stress these situations can cause and want to help relieve that burden for our customers. Westpac is providing a package which offers practical help by giving some immediate financial relief", posted Westpac Chief Executive George Frazis.
A meeting has been lined up in Brussels where the Minister for Finance, Brian Lenihan is going to discuss the _25 billion rescue of Anglo Irish Bank with European Union competition Commissioner, Joaquin.
Mr. Lenihan is going to be in Brussels to meet EU Finance Ministers. The expectations that the Government has kept are that immediate level conclusions will be seen to the commissioner's evaluation of the contentious plan of dividing Anglo into two factions, the good and the bad bank.
Owing to the gloominess hovering over the economy, Bank of England officials might have to keep interest rates on hold. It is noteworthy that there has been no change in the interest rates for18 months in succession.
On Thursday, the Bank's Monetary Policy Committee (MPC) is expected to announce its verdict of keeping the Bank Base Rate at 0.5%. Also, it is said that they might not be subject to change for several months in the future.
Though the UK economy witnessed a more than anticipated 1.2% in the second quarter, there is indication that growth has plummeted since that time.
It has been claimed by Metro Bank yesterday that it has beaten this year’s target for new account openings within a time period of just one month.
The Company has said in its statement that it is planning to create 100 new jobs, as it has prepared itself to open new branches. The Company has opened its second outlet at Earls Court and intends to come up with four new branches by the end of this year.
By the end of 2011, the Company has planned to create 12 new branches, and in 2012 it will come up with another 12 outlets.
A clear warning has been issued by HSBC that if the Commission on banking appointed by the Government of UK are given the responsibility to make a decision that big groups should be broken up, then the head quarters of British banks would move to abroad.
The group’s investment banking head, Stuart Gulliver said in his statement on Thursday that he was actually concerned about the decision of the commission that it would suggest the universal banks, including HSBC to split the high street banking, to avoid the risk of banking investment.
One of the largest banks of the world, HSBC has warned to move its headquarters away from London if the coalition government of UK plans to break up the big banks in the country.
The head of the investment banking division, Stuart Gulliver has made the statement at a banking conference in London. He has revealed that he has some doubts that the government of UK and the banking commission will split up the bag banks in order to speed up the economic recovery of the country.
The availability of loans and that too at affordable rates is being offered by big lenders, is indeed a significant deal.
The big lenders like First Direct and HSBC are providing loans starting at reasonable rates of 2.19%, with an additional 1.69% of Bank Base Rate for the full term.
With its 3.95% interest rate for 5-yearly mortgage backed loans, HSBC is leading the market. For remortgaging, up to 60% of the loans are being offered with free basic legal work. The loans are available directly and not through brokers.
A panel that is burdened with the responsibility to carry out inquiry into financial crisis, on Thursday, was informed by Ben S. Bernanke, who is the Federal Reserve Chairperson that watchdogs failed to use their powers and authorities in the right way, which they should have used, so as to stop risky practices by banks.
Also, he said that the regulators did not recognize and tackle the abuses that had taken place in the financial system of the United States of America, which gave a byproduct in the form of global economic slump.
The Cabinet Meeting that is going to be held today would be discussing the state of Anglo Irish Bank and what has to be done regarding its future. Anglo Irish Bank has been in trouble lately with all sorts of problems plaguing the management and staff.
The bank is currently reeling under a loss of €8.2 billion for the first half of the year; however, reports claim that the costs of the Bank would touch an estimated €22.88 billion. Also, post the valuations by NAMA; it would touch €25 billion.