ONS savings rate hits a minus
by Gill Montia
Story link: ONS savings rate hits a minus
Official figures from the Office for National Statistics (ONS) show the extent to which hard-pressed Britons are relying on savings to ride out the credit crisis.
During the first quarter of 2008 the UK’s savings rate, which is based on the amount of money being set aside from pay packets, fell to -1.1%.
According to the ONS, [...]
Around 2,000 City jobs to go this week
by Gill Montia
Story link: Around 2,000 City jobs to go this week
Over 2,000 finance jobs in the City of London could go this week.
Lehman Brothers’ administrators, PricewaterhouseCoopers (PWC), has already handed redundancy notices to 750 staff.
The employees affected work at the bank’s fixed income division, which PWC has been unable to sell.
Meanwhile, Swiss investment bank, UBS, is reported to be on the brink of cutting [...]
MBA Lazard opens office in Peru
by Richard Kilner
Story link: MBA Lazard opens office in Peru
Latin American investment banking group MBA Lazard has announced that it has opened a new office in Peru.
The financial advisory office is located in Lima, the Peruvian capital, and will be headed up by Augusto F. Barreto, who has been hired as a managing director.
Barreto brings more than 14 years of experience in investment banking [...]
New promise on £50,000 deposit guarantee
by Gill Montia
Story link: New promise on £50,000 deposit guarantee
The crisis in the banking sector has prompted Prime Minister Gordon Brown to hasten moves to raise the amount guaranteed in individual savings accounts from the current £35,000 to £50,000.
The proposed rise has been under discussion since the collapse of Northern Rock over a year ago and in July of this year, Chancellor of the [...]
New SAMS compensation challenge to HBOS and Barclays
by Gill Montia
Story link: New SAMS compensation challenge to HBOS and Barclays
As Lloyds TSB considers its takeover terms of HBOS, it should be aware that the latter may be liable for millions of pounds in compensation to the holders of Shared Appreciation Mortgages (SAMS).
HBOS, which comprises Halifax and Bank of Scotland, sold the interest free loans back in the 1990s but recent changes in the Consumer [...]
Co-op launches lifestyle choice current accounts
by Gill Montia
Story link: Co-op launches lifestyle choice current accounts
The Co-operative Bank has launched two current accounts that allow customers to choose benefits to suit their lifestyles.
According to the bank, the new Privilege and Privilege Premier accounts are the first of their kind in the UK, providing a wide range of benefits that can save customers over £700 a year.
In addition to standard benefits [...]
Cedicam appoints new deputy CEO
by Richard Kilner
Story link: Cedicam appoints new deputy CEO
Crédit Agricole Group’s payment flows and systems subsidiary Cedicam is to have a new deputy chief executive officer from 1 October.
Upon taking the role Eric Sorin will report directly to Jean-Claude Perchet, the firm’s CEO.
He leaves behind LCL, where he is presently head of the Banking IT Technologies and Services division, and brings almost a [...]
B&B rescue increases FSCS levy for building societies
by Gill Montia
Story link: B&B rescue increases FSCS levy for building societies
New laws introduced as a result of the collapse of Northern Rock one year ago mean that the taxpayer will not pick up the entire cost of the rescue of Bradford & Bingley (B&B) and its suspect £41 billion mortgage book.
The banking sector will be responsible for part of the bill because the Bank of [...]
Irish Government 100% guarantees bank deposits and debts
by Gill Montia
Story link: Irish Government 100% guarantees bank deposits and debts
The Government of Ireland has announced that it will guarantee the deposits and debts of the country’s banks for the next two years.
The move follows a sharp fall in Irish banking shares yesterday, which formed part of a worldwide response to the uncertainties surrounding the proposed $700 billion (£380 billion) rescue plan for the US [...]
Société Générale announce plethora of appointments
by Richard Kilner
Story link: Société Générale announce plethora of appointments
French bank Société Générale has announced a raft of appointments, all of which are effective from 1 October.
Jean-Pierre Mustier, presently Corporate and Investment Banking CEO, becomes head of Global Investment Management & Services.
In addition to this, Mustier will also succeed Alain Clot as chairman and CEO of the firm’s Asset Management division.
He will be seconded [...]
Heroic action of Barclays’ executive ends in tragedy
by Gill Montia
Story link: Heroic action of Barclays’ executive ends in tragedy
Barclays has lost one of its chief operating officers in tragic circumstances.
Frank McGarahan, who headed Barclays Wealth, intervened in an incident on the streets of Norwich on Sunday.
He then became the victim of an attack and died from his injuries at Addenbrooke’s Hospital in Cambridge on Monday, aged 45.
According to press reports, Mr McGarahan [...]
Citigroup buys parts of Wachovia
by Richard Kilner
Story link: Citigroup buys parts of Wachovia
Troubled US bank Wachovia has announced that it is to sell its retail bank, corporate and investment bank and wealth management businesses to its larger rival, Citigroup.
However, Wachovia will remain a functioning business, as a public body with subsidiaries Wachovia Securities and Evergreen Asset Management.
Under the agreement, the firm will receive $2.1bn from Citigroup, which [...]
Dexia SA centre stage for next European bank rescue
by Gill Montia
Story link: Dexia SA centre stage for next European bank rescue
Following the rescue of European banking and insurance giant, Fortis, over the weekend, Dexia SA, the Belgium-based bank that lends to local governments, is the next European financial institution on the verge of collapse.
The Belgium government and Dexia’s shareholders have come together to discuss a way of shoring up the bank, which is apparently [...]
Houlihan Lokey rehires Matthew Niemann
by Richard Kilner
Story link: Houlihan Lokey rehires Matthew Niemann
Houlihan Lokey has announced the appointment of Matthew Niemann as MD and co-head of the Midwest Restructuring Practice.
Niemann rejoins the firm from Cerberus Capital Chicago where he worked as an MD and handled private equity and lending investments.
In his new position with Houlihan Lokey he will offer companies advice regarding restructuring.
During his previous time with [...]
Deutsche Bank appoints Benelux MD
by Richard Kilner
Story link: Deutsche Bank appoints Benelux MD
Deutsche Bank has appointed Maarten van Berckel to serve as a managing director in the Global Banking team responsible for coverage of the Netherlands, Luxembourg and Belgium.
In his new post van Berckel will based in the Netherlands, in the bank’s Amsterdam office.
Van Berckel previously worked for Lehman Brothers International (Europe) as an MD, and also [...]
Credit Suisse appoints Equities Australia chiefs
by Richard Kilner
Story link: Credit Suisse appoints Equities Australia chiefs
Investment bank Credit Suisse has announced the double appointment of Andrew Norman and Nick Selvaratnam as co-heads of Equities Australia.
Together Norman and Selvaratnam will replace David Trude, who retires after 25 years with the firm.
Trude will continue to work for the organisation post-retirement, operating a senior advisor.
Both his successors are MDs, based in Sydney and [...]
Close Brothers start hunt for new chief executive
by Richard Kilner
Story link: Close Brothers start hunt for new chief executive
Close Brothers Group plc has announced that its chief executive for the last six years, Colin Keogh, is to stand down.
Keogh will part ways with the firm once a successor has been found, ending 23 years spent with Close Brothers.
Strone Macpherson, chairman, has praised Keogh’s long association with the firm, from leading Corporate Finance and [...]
Fortis receives support from Benelux governments
by Richard Kilner
Story link: Fortis receives support from Benelux governments
Fortis is to receive a multi-billion euro support package from the governments of Belgium, the Netherlands and Luxembourg, who are to give a combined total of 11.2bn to the bank.
The Belgian government is to provide Fortis Bank (Belgium) with 4bn euros, the Dutch government will grant 4.7bn to Fortis Bank Nederland (Holding), and Luxembourg is [...]
Bradford & Bingley nationalised
by Gill Montia
Story link: Bradford & Bingley nationalised
The Government has confirmed that Bradford & Bingley (B&B) is to be nationalised.
Parts of the buy-to-let lender will be sold, including its savings account business (which is worth around £22 billion) and its 200 branches, all of which should be functioning normally today.
Both are being acquired by Spanish banking group, Santander, which owns Abbey and [...]
Barclaycard fined £50,000 for “silent” calls
by Gill Montia
Story link: Barclaycard fined £50,000 for “silent” calls
Ofcom has fined Barclaycard £50,000 for making “silent” calls to its customers.
The calls emanate from automated dialling systems that generate more calls than staff can handle, with the result that when a customer answers the phone, the line is silent.
At best such calls are a nuisance and at worst they can cause alarm [...]
