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 [...]
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 [...]
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 [...]
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 [...]
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 [...]
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. [...]
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 [...]
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, [...]
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 [...]
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 [...]
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 [...]
The credit crisis has claimed yet another High Street bank as Wachovia, once America’s fourth biggest bank, has agreed to a rescue takeover by the world’s largest bank, Citigroup. Wachovia saw its share price plummet 90% to below 70¢ when Wall Street opened today. Federal regulators helped to arrange a deal in which Citigroup will [...]
Belgian-Dutch financial group Fortis has been partially nationalised after concerns were raised about its future health over the weekend. The group, which is Britain’s third-largest private car insurer, based on volume, and the fourth-largest travel insurer, saw its shares plummet by 35% last week over fears about its future. However, it has emerged this morning [...]
Shares in London, Europe and Asia have fallen amid doubts over the $700 billion (£378 billion) US Government’s financial rescue plan. While the rescue plan has been welcomed, there are fears about how it will come into effect in practice. In London, the FTSE 100 index lost over 100 points in morning trading to 5,143.05 [...]
Insurance giant, AIG, has been bailed out by the US Federal Reserve after an $85 billion (£48 billion) rescue package The news has been welcomed by global stock markets after two days of panic selling following the collapse of US investment banking giant, Lehman Brothers. There were fears that AIG was heading the same way [...]
Struggling former building society, Bradford & Bingley (B&B), is to be rescued by British banks due to pressure from the Financial Services Authority (FSA). The regulator has been taking responsibility for ensuring that B&B’s capital-raising does not head towards disaster after the criticism it received for neglecting to foresee the problems that led to the [...]
While today’s unprecedented action by the Bank of England in injecting £50 billion into the money markets is good new for homeowners and potential first-time buyers, it could be some months before the benefits are seen in terms of reduced mortgage interest rates and borrower-friendly lending criteria. Under the scheme, which has become effective immediately, [...]
M&S Money launches 3% cash ISA
M&S Money has launched an Advantage Cash ISA paying 3 per cent, and which allows transfers in from other ISAs. It can be opened with a minimum deposit of £100 lump sum followed by minimum monthly deposits of £25. The 3% rate is variable, but there is no short-term bonus so the return won’t plummet [...]
Google suspends UK Compare Mortgages site
Google has closed its UK mortgage comparison site which it launched in July last year, after it proved to be less popular than expected. Mortgage comparison sites are designed to allow visitors to compare mortgages quickly and easily without having to visit each lender’s individual site. Google was competing with several well-established comparison sites, including [...]
AA launches ‘black-box’ policy for young drivers
The AA is launching an innovative car insurance policy called Drivesafe which could help younger drivers save up to £850 a year. Younger drivers already pay substantially higher premiums than other motorists and these costs are increasing. A new study by Confused.com suggests insurance costs for younger driver have gone up by 5.7 per cent [...]
ATOL scheme updated to protect online bookers
ATOL, a financial protection scheme managed by the Civil Aviation Authority, is being extended to protect up to six million more holidays a year. The scheme ensures that holiday makers do not lose out financially if a travel company collapses, and that they are not stranded abroad. An increase in the number of holidays booked [...]
Home repossessions lowest for four years
The number of UK homes repossessed fell to 36,200 in 2011, significantly below the Council of Mortgage Lenders’ forecast of 40,000, and lower than 2010 when 37,100 homes were repossessed. With interest rates remaining low and lenders adopting a sympathetic attitude to customers in financial difficulty, repossessions fell to their lowest level since 2007. However, [...]
Monthly pay lasting just 17 days
Workers are running out of money just 17 days after receiving their monthly pay, according to new research by the Halifax bank. This means that the average UK worker spends half the month worrying about money. The study, based on the responses of more than 2,000 adults, found that 10 per cent of workers start [...]
Women disadvantaged by auto-enrolment changes
Government proposals to increase the auto-enrolment threshold to £10,000 could put 1.8 million women at risk of missing out on a pension, the TUC has warned. Under the auto-enrolment scheme, which will be phased in from October, private sector employers will automatically enrol workers between the age of 22 years and the state pension age, [...]
Emergency household repairs company Homeserve is taking longer than expected to get back on track after its operations were suspended last October. The company expected customer numbers to fall by 5% this year but it has increased this estimate to 8% and announced the loss of 200 jobs. It estimates that renewal revenue in 2013 [...]
Sale rumoured for Yorkshire and Clydesdale banks
There is growing speculation that National Australia Bank (NAB) may sell Yorkshire Bank and Clydesdale Bank after the Australian parent company announced a strategic review of the two banks’ operations. The Australian economy is performing well and NAB reported strong profits for the final quarter of 2011 but with the UK economy at a virtual [...]
More women experiencing debt difficulties
Women in Debt, which offers female-focused debt advice, has warned that the number of UK women facing serious debt has grown significantly over recent years. The organisation believes that more women will need advice on solving debt problems in the future because they are building up an unsustainable level of indebtedness. Women in Debt’s director, [...]
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