High Court rules in favour of OFT in bank charges case
by Gill Montia
Story link: High Court rules in favour of OFT in bank charges case
An initial High Court ruling on the penalty charges made by Britain’s High Street banks has found in favour of the Office of Fair Trading (OFT), which brought the case against eight banks, on the grounds that charges being made for unauthorised overdrafts were illegal under consumer law.
Mr Justice Andrew Smith has ruled that the [...]
Credit Suisse records first quarter loss
by Richard Kilner
Story link: Credit Suisse records first quarter loss
Today Credit Suisse, Switzerland’s second largest bank, posted a quarterly loss of $2.1bn.
The net loss, the first for five years, was larger than had been predicted.
The continuing effects of the subprime mortgage crisis are being cited as the primary reason for the loss, with $5.3bn in writedowns for loans and securities being recorded.
Accordingly, the bank [...]
ANZ plans for Asian expansion
by Richard Kilner
Story link: ANZ plans for Asian expansion
New Zealand bank ANZ is now one of only two remaining bidders hoping to acquire Hong Kong retail bank Wing Lung.
Recently, China’s Bank of Communications withdrew from the running, leaving only the New Zealand bank and Industrial & Commercial Bank of China competing for the prize.
The Bank of Communications is believed to have removed itself [...]
UBS cuts investment banking business
by Gill Montia
Story link: UBS cuts investment banking business
UBS, the Swiss investment bank, is undertaking a radical review following losses totalling around $37.4 billion so far, in connection with the US sub-prime mortgage crisis.
Chief executive, Marcel Rohner, has told a meeting of investors that the group’s investment banking business will be cut back and no longer subsidised by its wealth management activities. Mr [...]
$5.1bn Loss Reported By Citigroup
by Elisha Sanders
Story link: $5.1bn Loss Reported By Citigroup
US investment banking heavy-weight, Citigroup, has just announced that the first quarter saw the bank lose another $5.1 billion after they were forced to write down close to $16 billion.
This is the second subsequent loss for the company, who have announced that, as a part of their effort to dramatically reduce their cost base by [...]
HSBC launches Cash e-ISA at 6% AER
by Gill Montia
Story link: HSBC launches Cash e-ISA at 6% AER
HSBC has launched a new Cash e-ISA at a variable interest rate of 6% AER. Savers will need to apply online and require £1 to open their account.
However, the ISA is only available to existing HSBC customers, newcomers will need to first open an HSBC bank account.
No notice period is required on withdrawals and interest [...]
Bank of Canada reduces rates
by Richard Kilner
Story link: Bank of Canada reduces rates
Yesterday the Bank of Canada lowered interest rates by 50 basis points, as had been widely predicted.
The rate now stands at 3%.
In addition, the central bank reduced its growth forecast for this year from 1.8% to 1.4%.
However it has said it believes growth will increase to 2.4% in 2009.
The decline in expected growth this year [...]
Controls are daily problem in finance
by Richard Kilner
Story link: Controls are daily problem in finance
Business Control Solutions Group plc has conducted research which reveals that a staggering 94% of finance departments grapple with substantial problems on a daily basis.
The survey was completed on 28 February of this year by 35 anonymous delegates who work in various financial positions.
The biggest single problem facing finance departments is handling the information they [...]
RBS launches £12bn rights issue
by Gill Montia
Story link: RBS launches £12bn rights issue
Royal Bank of Scotland (RBS) has launched the biggest rights issue in UK corporate history.
The bank is raising £12 billion to underpin its balance sheet following writedowns of £5.9 billion from investments in mortgaged-backed securities and other debt related to the US sub-prime mortgage crisis.
Existing shareholders will be offered 11 new shares for every [...]
Credit card providers reject 18,000 applicants daily
by Gill Montia
Story link: Credit card providers reject 18,000 applicants daily
Fears of rising levels of personal debt are leading credit card companies to reject 18,000 applications from would-be account holders, each day.
According to research from financial website, MoneyExpert.com, credit card companies are continuing to tighten their criteria, with the result that over 3.24 million credit card applicants have been rejected in the past six months.
Barclaycard [...]
High Court to rule on bank charges case
by Gill Montia
Story link: High Court to rule on bank charges case
Memories of the High Court case that will settle the matter of the charges made by High Street banks for unathorised overdrafts have become somewhat blurred in recent months, as the global banking sector has teetered from crisis to crisis.
However, the outcome of the case is eagerly awaited by the millions of account holders who [...]
BoE outlines £50bn asset swap scheme
by Gill Montia
Story link: BoE outlines £50bn asset swap scheme
The Bank of England has confirmed details of its £50 billion package to aid the UK’s banking industry.
The scheme aims to restore confidence in the markets and encourage banks to lend to one another.
It will allow banks to swap mortgage-backed assets, which have effectively become non-tradable since the onset of the US sub-prime mortgage crisis, [...]
500 ANZ jobs planned for India
by Richard Kilner
Story link: 500 ANZ jobs planned for India
ANZ National, New Zealand’s biggest bank, has provoked union ire by planning to move 500 jobs out of the country and into India by 2009.
The bank has insisted that, as it adds hundreds of employees to its workforce annually, no New Zealander will actually need to lose their job.
It has also stated that call centre [...]
ADB lending rises by 37%
by Richard Kilner
Story link: ADB lending rises by 37%
Last year saw the Asian Development Bank respond to calls for greater support by increasing its loans by 37% on the previous year.
In total, it approved $10.1bn of loans in a year described as productive and exciting by ADB president President Haruhiko Kuroda in the organisation’s annual report.
Two years ago the ADB lent $7.4bn, a [...]
NZ banks could become more cautious
by Richard Kilner
Story link: NZ banks could become more cautious
Yesterday consultancy firm KPMG said that if the credit crunch becomes even worse, New Zealand banks could become more conservative, prompting an economic slowdown.
KPMG also stated that New Zealand banks had continued to grow in profitability over the course of 2007, largely due to strong asset growth.
The combined profits of the largest banks rose by [...]
Bank of America profits drop 77%
by Richard Kilner
Story link: Bank of America profits drop 77%
Yesterday the Bank of America declared losses in quarterly profit of 77%, and forecasts substantial further losses on consumer loans.
The news sent shares falling by 2.5% to $37.61.
It is the third consecutive quarter which has seen the bank record a loss.
The Bank of America is heavily involved in consumer banking, a factor which could prove [...]
BoE prepares £50bn rescue of UK banks
by Gill Montia
Story link: BoE prepares £50bn rescue of UK banks
The Bank of England is today expected to announce details of a plan that will ease the impact of the credit crisis on the UK banking sector.
A warning from the Council of Mortgage Lenders that home loans could be cut by 50% in 2008 has led to fears of a housing market crash and the [...]
RBS considers sale of Direct Line and Churchill
by Gill Montia
Story link: RBS considers sale of Direct Line and Churchill
Royal Bank of Scotland (RBS) is rumoured to be considering the sale of its Direct Line and Churchill insurance businesses.
The bank, which is the second largest in the UK, is also reported to be planning a rights issue of up to £13 billion and the disposals, which could raise £5 billion, might provide a means [...]
Citi’s $5.1bn loss emphasizes depth of crisis
by Dave Nixon
Story link: Citi’s $5.1bn loss emphasizes depth of crisis
Citigroup underlined the predicament of financial firms squeezed by the credit crunch and the slowing US economy on Friday by announcing a $5.1bn quarterly loss, nearly $16bn in writedowns and 9,000 job cuts.
However its shares rallied in New York, rising 4.5 per cent to end Friday’s session at $25.11, in the midst of investors’ hopes [...]
Financial services braced for job losses
by Dave Nixon
Story link: Financial services braced for job losses
Up until now most London banks have trimmed only those jobs directly affected by the US housing crisis, their structured credit trading desks. Credit Suisse dropped the headcount in its securities unit by about 150 in the UK this year, while Deutsche Bank said about 120 UK jobs would go from its global markets division. [...]
