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Friday 19th of June 2009

News Tag: rescue

June 12, 2009

West Bromwich Building Society in rescue deal

by Kay Murchie
It has been confirmed this morning that West Bromwich Building Society has agreed a deal that will see the 160-year-old institution saved from collapse. The deal will see £182.5 million of subordinated debt converted into capital to strengthen the mutual's balance sheet. The society said the new deal will "materially strengthen the society’s core tier 1 capital ratio from 6.8% to 11.6% ...

June 11, 2009

West Bromwich BS in rescue plan

by Kay Murchie
It is understood that the West Bromwich Building Society is to be rescued within days after weeks of speculation about its future. However, savers and mortgage borrowers have been assured that it’s business as usual since the rescue will not affect customers. There were talks last month that the country's eighth largest building society was in rescue talks after it was reported that ...

June 8, 2009

Van maker LDV files for administration as rescue deal collapses

by Kay Murchie
Thousands of UK jobs are at risk today after van maker, LDV, has been forced into administration after a deal with Weststar (the Malaysian vehicle importer and contract manufacturer) collapsed. LDV has been struggling of late and sought financial assistance from the Government earlier this year after it said it was “literally running out of cash” and warned ...

May 17, 2009

West Bromwich Building Society believed to be in rescue talks

by Kay Murchie
There have been reports over the weekend that West Bromwich Building Society is in rescue talks. The Sunday Times has reported that the Financial Services Authority is seeking a bidder for the mutual, which was one of nine building societies to have its credit rating downloaded by Moody’s last month, due to concerns they will be hit by ...

April 30, 2009

Van maker LDV files for administration

by Peter Charalambous
Crippled van maker LDV, owned by Russian oligarch Oleg Deripaska, announced yesterday that the company had applied to go into administration on 6th May, but trade unions are calling for the government to give a £4 million bailout sum, in order to keep the manufacturer going while rescue talks are underway. LDV is faced with administration due to the fact that the ...

March 30, 2009

Dunfermline rescued by Nationwide

by Kay Murchie
It has been confirmed this morning that the Nationwide is to buy the Dunfermline Building Society's branches, good loans and deposits. It was reported over the weekend that Scotland’s largest Building Society had collapsed after last-minute rescue attempts failed. The institution, which was established in 1869, will see Nationwide take on its 500+ staff and the brand will remain intact. The deal, which was rushed ...

March 29, 2009

Brown reassures savers as Dunfermline collapses

by Kay Murchie
Dunfermline Building Society, established in 1869, has collapsed after last-minute rescue attempts failed. The British financial institution, which has a workforce of around 500 across more than 30 branches, is to be auctioned off to the highest bidder with The Sunday Times reporting that Santander, National Australia Bank and Bank of Ireland are potential bidders. The Building Society, which is Scotland's largest, has ...

January 19, 2009

Government announces second bailout package for banks

by Kay Murchie
The Government has announced a second rescue package worth £200 billion for the banking system which will insure British banks against losses from bad loans. The plan is designed to prevent the financial crisis from getting worse and to improve confidence and the banks' ability to lend. Under the terms of an insurance scheme, banks will agree with the Government the ...

January 18, 2009

Further bank rescue as shares take a battering

by Kay Murchie
Bank shares on Friday took a battering amid speculation that more financial institutions will have to be rescued by the Government. Barclays stock was down 25% to its lowest level since 1993, while Royal Bank of Scotland lost 13%, the latter is 57.9% owned by the Government. Last week alone, Lloyds TSB saw its shares lose 30% in value as it ...

November 24, 2008

Citigroup receives $20bn injection of cash

by Kay Murchie
US banking giant Citigroup is to receive $20 billion (£13.3 billion) from the US Treasury in return for preferred shares in the struggling bank. The rescue package follows a weekend of crisis talks with the bank, the Treasury department, the US Federal Reserve and the Federal Deposit Insurance Corporation (FDIC). In a statement, the US Treasury, the Federal Reserve and the ...

November 3, 2008

Lloyds TSB/HBOS merger details unveiled

by Kay Murchie
The Lloyds TSB/HBOS merger looks set to proceed after both banks have announced plans to raise up to £17 billion through the Government's rescue scheme. Today, Lloyds said it plans to raise £4.5 billion from investors with the support of the Government and will offer the Government preference shares worth £1 billion. Meanwhile, HBOS said it plans to raise £8.5 billion through investors and ...

October 14, 2008

Stock markets await details of US banking rescue plan

by Kay Murchie
Shares on the FTSE 100 rose by 5.5% in morning trading today, adding to the rise yesterday following the £37 billion banking rescue plan announced by the Government. Across the Atlantic, the Dow Jones industrial average closed yesterday up 936 points after it lost 20% of its value on Friday, suffering its largest weekly fall since the Dow Jones ...

October 13, 2008

Shares recover as £37bn rescue plan revealed

by Kay Murchie
Shares on the FTSE 100 index have risen this morning on the news that the UK Government is to pump £37 billion into three of the country’s largest banks. Under the terms of the deal, banks have agreed to scrap executive bonuses for the current year and future bonuses will be paid in the form of shares. In addition, banks will ...

October 10, 2008

Mortgage providers uninspired by £500bn rescue plan

by Gill Montia
Mortgage providers uninspired by £500bn rescue plan
The announcement earlier this week of the £500 billion Government package of support for UK banks, plus a 0.5% cut in the Bank of England's base rate, has met with disappointing results in the mortgage market. According to financial website, Moneyfacts.co.uk, home loan providers have continued to withdraw products with high loan-to-value (LTV) ratios, leaving the number of deals that do ...

October 9, 2008

Do pray for us Mr Darling

by Gill Montia
Do pray for us Mr Darling
As yesterday morning's speaker on BBC Radio 4's "Thought for the Day" urged a bleary-eyed nation to consider in its prayers the plight of bankers, whose lives may be torn apart by the credit crisis, and bear in mind their efforts in support of charity, a new day of financial turmoil was about to break. Initial reports of a £50 billion rescue ...

October 8, 2008

Markets fail to respond to shock interest rate announcement

by Kay Murchie
The Bank of England announced its decision on interest rates a day early today following another eventful week on the financial markets. The Bank of England cut rates by half a percentage point from 5% to 4.5%, the last time this occurred was in September 2001. Rates have remained at 5% since April in a bid to curb inflation. Co-ordinated ...

£50bn rescue plan for UK banks at taxpayer’s expense

by Kay Murchie
Details of a £50 billion rescue package have been unveiled by the UK Government, which will see Britain’s top High Street banks part-nationalised in an attempt to prevent further crises in the financial sector. Eight of the UK's largest banks and building societies that have confirmed will take part in the plan are Abbey, Barclays, HBOS, HSBC, Lloyds TSB, ...

October 2, 2008

US shares plunge over fears $700bn rescue deal

by Kay Murchie
US shares have fallen today after investors are concerned over the US $700 billion (£380 billion) rescue package. Earlier this morning, it was announced that the US Senate voted in favour of a new version of the $700 billion (£380 billion) bailout plan. The revised scheme will now go back to the House of Representatives tomorrow. Despite the US Senate ...

September 30, 2008

Belgian bank Dexia is latest to be rescued by Government

by Kay Murchie
Yesterday saw Belgian-Dutch financial group, Fortis, rescued after the Governments of Belgium, Luxembourg and the Netherlands invested a total €11.2 billion (£8.9 billion) in the respective Fortis bank institutions in each country. Each Government will take a 49% stake in Fortis. It has emerged today that Fortis’ rival, Dexia, has become the latest European bank to be ...

Concerns over Lloyds TSB rescue deal for HBOS

by Kay Murchie
Banking shares have been the sharpest fallers on the FTSE 100 today in London as it was announced late last night that the US $700 billion (£380 billion) bailout scheme was rejected after it failed to gain support from Congress who voted against the proposed scheme. One of the biggest fallers today was HBOS who lost 12% as speculation mounted ...

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