KPMG is predicting a sharp rise in the number of personal insolvencies in England in Wales during 2009. The professional services firm estimates that up to 150,000 people will either be declared bankrupt or enter into Individual Voluntary Arrangements (IVAs) or Debt Relief Orders (DROs) during the course of the year. DROs are being introduced [...]
The Bank of Israel has cut interest rates by 75 basis points to 1.75%. The move is the latest in a long line of cuts mirrored by central banks across the world from New Zealand to the US. Inflation in Israel decreased by 0.6% to 3.9%, reflecting the declining global demand for goods. The cut [...]
The merger between British banking giants HBOS and Lloyds TSB, forged in the heat of the turbulence that has so grievously damaged the financial sector in recent months, could be thrown into peril. The nine trustees of the HBOS pension fund are contemplating asking a judge to put the deal, which was given the go [...]
A report claims that a less dramatic end to Lehman Brothers could have secured up to $75 billion (£51 billion) for creditors of the failed Wall Street investment bank, which filed for Chapter 11 bankruptcy protection in September. According to The Wall Street Journal, the bank’s restructuring advisers, Alvarez & Marsal, believe a more orderly [...]
National Debtline, the government-funded service that offers free advice to consumers struggling with their finances, experienced a sharp rise in calls during November. The telephone helpline, which covers England, Scotland and Wales, was contacted by 23,000 people with debt problems, up from 16,000 in November 2007. The growth was partly fuelled by homeowners with mortgage [...]
UK banks could be facing huge writedowns on commercial property loans in the year ahead. According to a report in the Daily Telegraph, a collective loss of up to £70 billion is being forecast by Close Brothers. The investment bank is predicting that the value of commercial property could plummet by between 50% and 60% [...]
Moneysupermarket.com is forecasting a difficult year ahead for borrowers with unsecured loans. The price comparison website’s head of loans, Tim Moss, expects banks to continue to keep a tight grip on lending, which when combined with a rise in unemployment will leave more people struggling to repay outstanding debts. According to Mr Moss, consumers who [...]
BDO Stoy Hayward is forecasting a sharp rise in the number of UK manufacturing firms that have failed. The accountancy firm and business advisor expects a 37% rise on 2007 figures. In its Manufacturing Industry Watch report, BDO puts the number of manufacturing failures this year at 1,841 up from 1,341 during 2007. The firm’s [...]
Interviewed on the BBC’s Panorama programme screened last night, the Deputy Governor of the Bank of England has admitted that the Bank underestimated the severity of the economic crisis. Sir John Gieve explained that it had forecast a correction but not on the scale of the current downturn. The mis-judgment occurred despite awareness that lending [...]
NatWest is extending its provision for Polish immigrants in the UK with a new money transfer service. Last year, the bank launched a Polish bank account specifically to cater for economic immigrants from the Eastern European country. Research by NatWest established that the main need of Polish speaking communities in Britain was to be able [...]
New research from uSwitch has revealed that following recent cuts in the Bank of England’s base rate, around 76 savings providers have reduced interest rates. However, while the base rate has fallen by 2.5% since November, rates on savings accounts have fallen by up to 4% on over 150 products. According to the price comparison [...]
A customer of Coutts has launched a website aimed at enrolling support for his campaign to encourage the bank to make amends for alleged poor investment advice. British entrepreneur, Sir Keith Mills, has accused the private bank of misadvising clients about a £6 billion money-market fund run by troubled US insurer, American International Group (AIG). [...]
A member of the Bank of England’s Monetary Policy Committee (MPC) has been trying to allay fears of a withering economy by reassuring Britons that the reduction in the base rate to 2% means the UK economy is less likely to enter a deflationary spiral. Tim Besley, who supported the last two cuts in the [...]
The deputy governor of the Bank of England has admitted that the Bank did not understand the severity of the economic problems facing the UK, before the credit crisis. Interviewed for the BBC’s Panorama programme to be screened tonight, Sir John Gieve explains that while the Bank was aware that lending was at crazy levels [...]
The Irish government is about to throw a €5 billion lifeline to its three biggest banks, according to reports in the press. Unnamed sources have informed Dublin’s Sunday Business Post and the Irish edition of The Sunday Times that the troubled Anglo Irish Bank could become 80% state owned. The two other banks named as [...]
Alliance & Leicester (A&L) has been taking a look at the savings habits of Britons during 2008 to discover that one in seven people questioned have not saved anything this year. Respondents in this category were split equally between those who had regrets about the situation and those who were surprisingly unconcerned. Meanwhile, one in [...]
