Banks benefit from High Court ruling on credit agreements
by Gill Montia
Story link: Banks benefit from High Court ruling on credit agreements
A Manchester court has ruled in favour of banks and other lenders with regard to certain credit agreements.
Recent rapid growth in fee-charging debt management firms has led to a raft of companies offering to use the provisions of the Consumer Credit Act 1974 to nullify credit agreements taken out before April 2007.
An agreement under the [...]
Scotiabank increases stake in XACB
by Richard Kilner
Story link: Scotiabank increases stake in XACB
Canadian financial institution Scotiabank has announced it has increased its stake in Xi’an City Commercial Bank (XACB) by 13.2%.
XACB, one of Western China’s foremost commercial banks, is now 14.8% owned by Scotiabank.
This will later rise to 18.1%, following the green light from the necessary authorities, in accordance with agreements made between the two institutions.
In the [...]
Icelanders agree £3.4 billion in Icesave compensation
by Gill Montia
Story link: Icelanders agree £3.4 billion in Icesave compensation
The Icelandic parliament has sanctioned the repayment of £3.4 billion to authorities in the UK and The Netherlands.
The collapse of Landsbanki in October of 2008 left over 300,000 British savers with the bank’s online Icesave brand their accounts frozen.
The Treasury stepped in with a 100% guarantee for individual savers and stumped up £2.35 billion in [...]
Parents anxious about children falling into debt
by Richard Kilner
Story link: Parents anxious about children falling into debt
Nationwide has conducted research in conjunction with the Personal Finance Education Group revealing that some 69% of British parents are concerned about their children falling into debt in the future.
This marks a rise from last year when only 62% of parents felt anxious about the subject.
The research also shows that parents believe financial responsibility ought [...]
Cattles shareholders call for insolvency
by Gill Montia
Story link: Cattles shareholders call for insolvency
Shareholders of Cattles are continuing to demand that the firm be wound up, The Times has reported.
The beleaguered doorstep lender once had ambitions to become a retail bank but its shares were suspended in April, after six directors had been suspended and the firm announced plans to restate its 2007 accounts.
The lender, which operates under [...]
FSB calls for return to “normal” lending criteria
by Gill Montia
Story link: FSB calls for return to “normal” lending criteria
In a New Year message, the national chairman of the Federation of Small Businesses (FSB) is calling on banks “to return to their normal lending criteria, and to start playing their role as lenders with a large dose of modesty”.
According to John Wright, Britain’s five million small businesses will play a central role in the [...]
Sberbank reports 11 month results
by Richard Kilner
Story link: Sberbank reports 11 month results
Sberbank has released its financial results for the first 11 months of 2009.
Pre-provisions operating income surged up by 24.7% compared to the same period in 2008.
Net interest income was up by more than a third, rising by 36.1%, and net fee and commission income was also up, by a margin of 8.6%.
At the same time [...]
Credit Suisse appoints Australia CEO
by Richard Kilner
Story link: Credit Suisse appoints Australia CEO
Investment bank Credit Suisse has announced the appointment of David Livingstone as chief executive officer of Australia.
Livingstone will acquire seats on the Asia Pacific Operating Committee and the Asia Pacific Country Management Committee, and be directly responsible to Kai Nargolwala, the chief executive officer of Credit Suisse Asia Pacific.
He will be based in Sydney, and [...]
MBNA data theft was avoidable
by Richard Kilner
Story link: MBNA data theft was avoidable
Identity theft remains an expanding area of crime, and with the theft of a laptop from MBNA Bank those with credit cards with MBNA Bank will have spent the holidays anxious about their identities being stolen.
Perhaps exacerbating the situation is that fact that a secure, portable data storage device could have safeguarded against such an [...]
JPMorgan Chase weight London headquarters in the balance
by Gill Montia
Story link: JPMorgan Chase weight London headquarters in the balance
The chief executive of JPMorgan Chase has reportedly intimated to Chancellor of the Exchequer Alistair Darling that plans to build a European headquarters at Canary Wharf could be reconsidered.
Jamie Dimon is apparently unhappy at the prospect of a 50% tax on banker bonuses, payable by banks.
The temporary levy, announced in the pre-Budget report, is due [...]
Virgin Money considers small bank acquisition
by Gill Montia
Story link: Virgin Money considers small bank acquisition
Virgin Money is reported to be considering the acquisition of a small bank to enable its expansion into the UK’s retail banking sector.
The company’s name has already been linked to Government plans to create three new retail banks from the dissolution of Royal Bank of Scotland (RBS), Lloyds Banking Group and Northern Rock.
In November, the [...]
RBS named as major creditor of Glitnir
by Gill Montia
Story link: RBS named as major creditor of Glitnir
Royal Bank of Scotland (RBS) is reported to be one of the biggest creditors of failed Icelandic bank, Glitnir.
Around 8,600 creditors are claiming more than £20 billion from bank, which was taken over by Icelandic authorities in October of 2008.
RBS is reported to be facing a loss of £500 million, although a spokesman for the [...]
Huge pay rises for Barclays’ investment bankers
by Gill Montia
Story link: Huge pay rises for Barclays’ investment bankers
Barclays has reportedly awarded investment bankers huge pay rises.
The bank is understood to be increasing salaries for some Barclays Capital staff by up to 150%, with the average boost to income at 25%.
At the height of the financial crisis, Barclays shunned the Government’s Asset Protection Scheme (APS) in favour of raising capital from Middle Eastern [...]
KPMG reports a “lost decade” for pensions
by Gill Montia
Story link: KPMG reports a “lost decade” for pensions
A new report from KPMG suggests that the last ten years could become known as the “lost decade” for pensions.
According to the accountancy firm, average pension scheme returns have been less than half that of bank deposits, growing assets by just over 2.25% a year (excluding costs).
Based on a fairly typical investment strategy over the [...]
Lloyds fined $217 million for US sanction busting
by Gill Montia
Story link: Lloyds fined $217 million for US sanction busting
Lloyds Banking Group has been handed down a $217 million fine from the US Treasury department over cash transfers relating to clients resident in Iran, Libya and Sudan.
The bank has acknowledged breaking US sanctions, aimed at preventing the funding of terrorist organisations, by allowing clients in these countries to conduct business with US financial institutions.
Between [...]
Abbey technical glitch delays payday
by Gill Montia
Story link: Abbey technical glitch delays payday
Abbey has been hit by an overnight technical glitch that means thousands of customers have failed to have their accounts topped up with BACS payments that include salaries and benefits.
The bank has promised that it is doing all it can to get the payments through and will honour direct debits and standing orders on affected [...]
MPs ask OFT to investigate credit application scoring
by Gill Montia
Story link: MPs ask OFT to investigate credit application scoring
The Treasury Select Committee has been considering the impact of the banking crisis on the consumer and has issued a report on the availability of consumer credit.
The study focuses on the dangers of shopping around for unsecured credit (such as personal loans and credit cards) which can result in would-be borrowers building up a credit [...]
Government calls time on “log book” loans
by Gill Montia
Story link: Government calls time on “log book” loans
The Government looks set to end “log book” loans whereby a borrower secures a loan against their car by signing over the vehicle’s logbook to the lender, representing a “bill of sale”.
Consumer minister, Kevin Brennan, has announced a 12 week consultation, after which the practice is expected to be banned.
The system is used by people [...]
December ATM withdrawals could hit £10.6bn
by Gill Montia
Story link: December ATM withdrawals could hit £10.6bn
December could see up to £10.6 billion withdrawn from UK cash machines, according to Sainsbury’s Finance.
Despite the recession, the projected total is £ £619 million more than extracted in December 2008, as ATMs deliver £237,100 a minute in the run-up to Christmas.
Traditionally, the average amount paid out rises 12.4% in December compared with other months [...]
HSBC sells Paris offices for €400 million
by Gill Montia
Story link: HSBC sells Paris offices for €400 million
HSBC has sold its Paris offices to French Properties Management, for €400 million.
The transaction represents the third sale-and-leaseback agreement to be negotiated by Europe’s biggest bank this year.
The group sold its New York headquarters to 452 Fifth Owners LLC in October, and a month later, its European headquarters at London’s Canary Wharf to the National [...]
