Action group mounts legal challenge to Lloyds TSB / HBOS merger
by Gill Montia
Story link: Action group mounts legal challenge to Lloyds TSB / HBOS merger
A Merger Action Group (MAG) has been formed to bring a legal challenge to the proposed merger of Lloyds TSB and HBOS.
The takeover was announced in September, with the all-share deal approved by the Government, which was prepared to put aside competition issues to see HBOS rescued by its more stable competitor.
The merger has since [...]
Brewin Dolphin announces preliminary results
by Richard Kilner
Story link: Brewin Dolphin announces preliminary results
Brewin Dolphin Holdings PLC Group has released preliminary financial results for the period up to 28 September of this year.
Total income was recorded at £206m, down £3m from the corresponding period in 2007.
Discretionary funds fell by 4.7% to £10.2bn, although this did occur over a difficult time when the FTSE lost more than threefold that [...]
Collins Stewart names Product Development head
by Richard Kilner
Story link: Collins Stewart names Product Development head
Collins Stewart has announced the appointment of Collette Wisener-Keating as the firm’s new head of Product Development, part of Collins Stewart Fund Management.
She brings with her almost a decade of experience with JPMorgan Asset Management and two years with the European Islamic Investment Bank.
In her new role Wisener-Keating will assume responsibility for operations and development [...]
RBS passes to majority state-ownership
by Gill Montia
Story link: RBS passes to majority state-ownership
Royal Bank of Scotland (RBS) is to become majority state-owned.
The bank’s latest recapitalisation involved the Government underwriting a £15 billion rights issue, at 65.5p a share, having already committed to buying £5 billion of RBS preference shares, paying annual interest at 12%.
The offer closed earlier this week and according to today’s statement from RBS, 0.24% [...]
Savings account providers grasp base rate cut
by Gill Montia
Story link: Savings account providers grasp base rate cut
New research from Moneyfacts.co.uk shows the extent to which UK savers are losing out as a result of this month’s cut in the Bank of England’s base rate, to 3%.
The financial website has revealed that rates on almost a quarter of variable rate savings products have already been reduced.
So far, 22% of savings account providers [...]
FSA amends savers’ compensation for merged building societies
by Gill Montia
Story link: FSA amends savers’ compensation for merged building societies
A wave of consolidation among UK building societies has led the Financial Services Authority (FSA) to amend compensation rules for savers who discover they have deposits with mutuals that are undergoing a merger.
As a result of the change, when Nationwide completes its merger with Derbyshire and Cheshire building societies next month, a saver with £50,000 [...]
Struggling credit card borrowers to get 30 days grace
by Gill Montia
Story link: Struggling credit card borrowers to get 30 days grace
Following yesterday’s meeting between credit card company chiefs and government ministers, a deal has been struck that means customers with large balances to clear should receive help more readily.
The cost of borrowing on credit cards has risen over the past year, despite cuts in the Bank of England’s base rate, which at its current [...]
Taxpayer to take up the slack as RBS share issue shunned
by Gill Montia
Story link: Taxpayer to take up the slack as RBS share issue shunned
As anticipated, Royal Bank of Scotland’s (RBS) share issue, which closed yesterday, has not proved popular with its existing shareholders, many of whom subscribed to the bank’s £12 billion fundraising in the summer.
While accurate figures are not yet available, it is likely that almost 60% of the bank will pass into state ownership.
The recapitalisation has [...]
Ministers call credit card companies into line
by Gill Montia
Story link: Ministers call credit card companies into line
Recent reports that credit card companies are increasing rates in time to catch out Christmas shoppers and in defiance of this month’s 1.5% cut in the base rate, have prompted ministers to meet with the bosses of leading credit card providers today.
It is understood that business secretary, Peter Mandelson, and consumer affairs minister, Gareth Thomas, [...]
Israel cuts interest rates by 50 basis points
by Richard Kilner
Story link: Israel cuts interest rates by 50 basis points
The Bank of Israel has continued to cut interest rates, reducing them by 50 basis points to 2.5%.
October saw Israel’s CPI rise by just 0.1%, although annually it has increased by some 5.5%.
It is widely forecast that Israeli inflation will begin to fall in the near future, as global demand decreases due to economic difficulties [...]
Nomura appoints EMEA Global Markets Sales chief
by Richard Kilner
Story link: Nomura appoints EMEA Global Markets Sales chief
Nomura Holdings, Inc. has announced that David Bizer has been hired to serve as head of Global Markets Sales for the EMEA (Europe, Middle East and Africa) region, and gains a seat on the regional Executive Committee.
Before taking up his new role, Bizer worked for Lehman Brothers as Fixed Income Sales head for the EMEA [...]
Nomura hires new chief risk officer
by Richard Kilner
Story link: Nomura hires new chief risk officer
David Benson has been named by Nomura Holdings, Inc. as the firm’s new chief risk officer, and senior MD.
As chief risk officer, Benson will become responsible for the worldwide management of Nomura’s risk profile.
In this role he will be tasked with working in collaboration with heads of business and regional chiefs to ensure that the [...]
Unauthorised overdraft charges continue to rise
by Gill Montia
Story link: Unauthorised overdraft charges continue to rise
MoneyExpert.com is convinced that consumers who exceed their agreed overdraft limits are paying more in charges than a year ago.
According to the financial website’s research, the average bank customer can expect to pay an additional £5 in charges for every transaction that puts their account in the red or keep it there.
The rise represents a [...]
Credit card providers to share more customer data
by Gill Montia
Story link: Credit card providers to share more customer data
Some of the UK’s top credit card providers have signed up to an agreement that allows new methods of sharing customers’ “behavioural data”.
The move is in response to government demands that lending practices should become more responsible than in the years leading up to the credit crisis.
From next month, Barclaycard, Capital One, GE Money, HBOS [...]
BoE Governor sends warning shot on bank lending
by Gill Montia
Story link: BoE Governor sends warning shot on bank lending
The Governor of the Bank of England has sent a warning shot in the direction of UK banks that are benefiting from a taxpayer-funded bail out or Treasury guarantees but are not keen to increase their lending.
Speaking to the Treasury Select Committee this morning, Mervyn King outlined the danger of the UK economy entering a [...]
Fitch downgrades seven UK building societies
by Gill Montia
Story link: Fitch downgrades seven UK building societies
Fitch has downgraded the credit ratings of seven UK building societies.
Britannia, Chelsea, Newcastle, Principality, Skipton, West Bromwich and Yorkshire have all been downgraded, reflecting the credit rating agency’s assessment of their exposures to specialist mortgages, such as sub-prime and buy-to-let, and high loan to value (LTV) ratios.
The move also takes account of the mutuals’ involvement [...]
Japan keeps interest rates at 0.3%
by Richard Kilner
Story link: Japan keeps interest rates at 0.3%
The Bank of Japan’s Monetary Policy Meeting last Friday has yielded a unanimous vote to retain its present interest rate at 0.3%.
The central bank has stated that economic activity remains stilted due to the continuing effects of energy and materials rising in price earlier in the year coupled with a decline in export activity.
CPI (minus [...]
Absa announces new group chief executive
by Richard Kilner
Story link: Absa announces new group chief executive
South African financial services firm Absa Group has announced the appointment of Maria Ramos as the new group chief executive, pending regulatory approval.
She will succeed Steve Booysen, who parts ways with Absa after a long career, giving up not only the position of group chief executive but also his seats on the Absa Group and [...]
LBBW to bolster its capital position
by Richard Kilner
Story link: LBBW to bolster its capital position
German bank, Landesbank Baden-Württemberg (LBBW), has embarked upon a capitalisation plan in a bid to enhance the firm’s competitive edge, which is particularly important amid the present financial crisis and wider global economic difficulties.
Although enjoying an overall solid performance in its key business areas, LBBW has lost €884m (£753.4m) (before tax) due to the global [...]
Standard Chartered embarks on £1.78bn rights issue
by Gill Montia
Story link: Standard Chartered embarks on £1.78bn rights issue
Standard Chartered has announced plans to raise £1.78 billion in a rights issue.
Existing shareholders will be able to buy 30 shares for every 91 shares held at a price of 390 pence a share, representing a 48.7% discount on the company’s closing price on Friday 21st November.
According to the emerging markets bank, the fundraising will [...]
