Bank of America (BoA) is set to repay $425 million to the US Federal Reserve, having needed taxpayer support to absorb Merrill Lynch when the latter came close to collapse last autumn. The takeover was completed in January, when the merger created the largest wealth management business in the world. At the time the US [...]
In a statistical release covering the second quarter of 2009, APACS has reported that while plastic card spending overall increase by 3% year-on-year, to £95.5 billion, spending on credit cards contracted. According to the UK payments association, the number of purchases and the amount spent fell by -0.1% and -1.0% respectively, taking credit card spending [...]
Christophe Hioco has been named by Société Générale Corporate & Investment Banking as the firm’s new chief operating officer. Hioco’s responsibilities in the newly created position will primarily involve the wise allocation of scarce resources as well as spearheading the shift in the operational model of Société Générale Corporate & Investment Banking. He will directly [...]
The National Association of Pension Funds (NAPF) has launched a quality mark for defined contribution schemes. The move is aimed at helping employees judge the quality of a company pension scheme and the award is only given where certain minimum standards are met, including employer contribution levels at 6%. The amount is double what will [...]
HSBC is suing Hassan Nemazee, a US financier who has been a leading fund-raiser for President Barack Obama and other Democrats, as far back as the Clinton era. According to a report by Reuters, the 59-year-old allegedly persuaded the bank to make him a loan of $100 million, secured against US Treasury Notes that do [...]
Lloyds Banking Group is being investigated by HM Revenue & Customs (HMRC), over allegations that the bank is encouraging British offshore savers to avoid tax. According to the BBC’s Panorama programme, to be screened tonight, the Jersey unit of the bank is chanelling money through China. The Panorama team has secretly filmed a journalist posing [...]
The BBC has reported that the Government is launching a consultation process on the debt management industry, a sector that is growing rapidly but remains largely unregulated. Debt management firms negotiate with lenders on behalf of clients in financial difficulties and outcomes can include Individual Voluntary Arrangements or extended and reduced repayment terms. However, the [...]
HSBC has agreed a 10-year partnership deal with AXA Insurance. From 1st January 2010, the insurer will provide the bank with a range of products for small and medium-sized business customers. According to AXA, the property, casualty and motor products have all been specially tailored to the needs of the UK’s small and medium-sized enterprises [...]
Brixton has launched its own currency. The south-east London location is fighting the recession with the Brixton pound, which can only be spent in the area. According to The Daily Telegraph, 55 businesses have agreed to give Brixton notes out in change, or pay a portion of employees’ wages in the currency, which appears in [...]
The Bank of Japan has elected to keep the country’s interest rate at 0.1%. The decision, made by a unanimous vote, comes as the Japanese economy continues to show signs of improvement. Japan officially exited recession in the second quarter, and public investment, exports, and production are all on the rise. However, the picture is [...]
The Associated Press news agency has reported that the forthcoming meeting of the G20, beginning next Thursday, could see EU leaders advocating sanctions against banks that pay excessive bonuses. Some countries in the EU are particularly eager to cut back on what are seen as financial rewards for reckless risk-taking, and for encouraging the US [...]
The battle against climate change requires developed economies to combine reduction of their collective carbon footprint with the swift development of alternative sources of energy, according to the World Bank. The World Bank has also called on the wealthy nations of the world to support developing countries with financial and technical support, enabling poorer nations [...]
With competition for savers’ money remaining hot, National Savings & Investments (NS&I) has raised the value of the premium bond prize fund by 50%. From October, the government-backed savings provider is increasing the payout rate from 1% to 1.5% of the fund. In value terms, the monthly draw will rise from £33.8 million to £52.5 [...]
Reuters has reported that the future of Lloyds Banking Group, the banking giant formed by the hurried takeover of HBOS by Lloyds TSB, may be in jeopardy. The news agency has stated that a ruling by the EU Commission could see the forced break-up of the bank resulting in the total or partial sale of [...]
The Bank of England may reduce the rates it pays on the reserves deposited with the central bank by the UK’s commercial banks. BoE Governor, Mervyn King, has indicated to the House of Commons Treasury Select Committee that such a move is under consideration because it could encourage banks to lend more. The Treasury’s quantitative [...]
The Institute for Public Policy Research (IPPR) has warned that policymakers have failed to address the problems at the root of the financial crisis. The influential think tank believes that “unless urgent action is taken” there is a real danger that the current crisis may not be the last of its type. IPPR senior economist, [...]
The Financial Ombudsman Service (FOS) has for the first time published complaints data naming the banks, insurance companies and investment firms that feature in its statistics. The figures cover the six months to the end of June and show the number of complaints received about individual businesses and the percentage of complaints upheld by the [...]
