Tag: taxpayer

Stocks down as RBS faces US lawsuit

Stocks down as RBS faces US lawsuit

Shares in Royal Bank of Scotland (RBS) lost 10% today after it emerged that the bank is being sued by America’s Federal Housing Finance Agency (FHFA) over the sale of residential mortgage-backed securities (RMBSs). The FHFA was established in July 2008 when Fannie Mae and Freddie Mac had to be rescued which, at the time, [...]

September 5, 2011 | 0 Comments More
Struggling HMV secures future with refinancing agreement

Struggling HMV secures future with refinancing agreement

Shares in troubled music, books and games retailer HMV have risen today after it emerged that it has secured a new refinancing deal with its lenders. The deal, worth £220 million, will see the taxpayer taking a stake in the company. The group’s main lenders are taxpayer-backed Royal Bank of Scotland and Lloyds Banking Group. [...]

June 7, 2011 | 0 Comments More
US Treasury sells stake in Citigroup

US Treasury sells stake in Citigroup

The US Treasury has disposed of its remaining stake in Citigroup - bringing a net profit to taxpayers of $12 billion (£7.6 billion). The banking giant, which was badly hit during the financial crisis, was the recipient of a $45 billion cash bailout in 2008 and 2009, with the funds coming from the Troubled Asset [...]

December 8, 2010 | 0 Comments More
HSBC to double pay of top bankers

HSBC to double pay of top bankers

Banking giant HSBC is proposing to raise the basic salaries of its senior investment bankers, in an attempt to beat the crackdown on bonus payouts. However, the move is likely to trigger unrest among the public sector, which is faced with savage cuts, as the Government attempts to bring down the budget deficit. Furthermore, the [...]

November 17, 2010 | 0 Comments More
Banks understood to be cutting bonus payments

Banks understood to be cutting bonus payments

A report by the BBC has revealed that Britain’s biggest banks are understood to be in talks about reducing the amount they receive in bonuses. Bonuses have been a major issue for some time now and have sparked public outrage since many argued that excessive bankers’ bonuses reward the risk-taking culture that led to the [...]

November 15, 2010 | 0 Comments More
‘Bad banks’ of Rock and B&B to merge

‘Bad banks’ of Rock and B&B to merge

It has been announced today the ‘bad banks‘ of Northern Rock (NRAM) and Bradford and Bingley (B&B) are set to merge. The move is designed to cut costs and bring greater returns for the taxpayer. The UK Financial Investments (UKFI), the body which was set up at the height of the financial crisis to oversee [...]

March 24, 2010 | 0 Comments More
Banking industry criticise Treasury’s plans for windfall tax

Banking industry criticise Treasury’s plans for windfall tax

Over the weekend, it emerged that Chancellor Alistair Darling is expected to announce a windfall tax on British banks in Wednesday‘s Pre-Budget Report. The measure is one of many being planned by Mr Darling to target high earners. Other measures include increasing the number of people liable to pay inheritance tax, as well as an [...]

December 7, 2009 | 0 Comments More
RBS bankers join rival firms over bonus row

RBS bankers join rival firms over bonus row

According to The Sunday Times, over 1,000 investment bankers have left the Royal Bank of Scotland (RBS) after a heated row with the Treasury over bonuses. The investment bankers account for less than 5% of staff in the bank’s investment division and comes as the Government plans to veto bonus payments at the bank. The [...]

December 6, 2009 | 0 Comments More
Lloyds confirms plans for rights issue

Lloyds confirms plans for rights issue

Lloyds Banking Group has today confirmed it is considering a rights issue, in order to repair its balance sheet which was battered following the takeover of rival HBOS, as well as avoiding participating in the Government’s Asset Protection Scheme (APS). There has been speculation that the bank, which is 43% owned by the taxpayer, has [...]

October 29, 2009 | 1 Comment More
RBS: No economic recovery until at least 2011

RBS: No economic recovery until at least 2011

The Royal Bank of Scotland (RBS) warned this week that the UK’s economy will not start recovery until 2011. Stephen Hester, chief executive, expects unemployment to continue rising. The journey to economic recovery will be a “marathon” rather than a “sprint”, Hester said. “I believe we are coming out of the problems but when we [...]

August 11, 2009 | 0 Comments More
UKFI admits selling stakes in nationalised banks will be “challenging”

UKFI admits selling stakes in nationalised banks will be “challenging”

UK Financial Investments (UKFI), the body set up to manage taxpayers’ interests in rescued banks, has today admitted that returning investments to the private sector will be “challenging”. According to the body, each household in the country has over £3,000 invested in Lloyds Banking Group and Royal Bank of Scotland (RBS), which are 43% and [...]

July 13, 2009 | 0 Comments More
Lloyds shareholders respond strongly to cash call

Lloyds shareholders respond strongly to cash call

87% of new shares offered by Lloyds Banking Group have been bought by the bank’s shareholders. Strong support was expected since the shares were offered at 38.43p - heavily discounted from last Thursday’s closing price of 67.1p. Lloyds announced the cash call in order to replace the £4 billion of preference shares held by the [...]

June 8, 2009 | 0 Comments More
Ten US banks require $75bn to cover future losses

Ten US banks require $75bn to cover future losses

Following the recent stress tests on 19 US banks, it has now been revealed that ten of the banks require a total of $74.6 billion (£50 billion) in extra capital to cover future losses. The stress tests were conducted by the Federal Reserve to establish which financial institutions are in a position to weather the [...]

May 8, 2009 | 0 Comments More
9,000 jobs to go at RBS

9,000 jobs to go at RBS

It has been reported that the Royal Bank of Scotland (RBS) is to axe 9,000 jobs, with 4,500 positions to go in the UK. The job losses are part of a £2.5 billion cost-cutting programme, scheduled to take place over the next two years. The move has been described as “truly devastating” by unions. The [...]

April 7, 2009 | 0 Comments More
Lloyds staff set to receive £80m bonus

Lloyds staff set to receive £80m bonus

Staff at Lloyds Banking Group are in line for an £80 million cash bonus in spite of the taxpayer stake increasing from 43% to 65% after it signed up to the Government’s Asset Protection Scheme over the weekend. The scheme, which insures against losses arising from toxic assets, will see Lloyds commit to lending at [...]

March 9, 2009 | 0 Comments More
Barclays and Lloyds shares plummet amid bailout talks

Barclays and Lloyds shares plummet amid bailout talks

This morning, Barclays saw its shares plummet almost 10% prior to talks with the Government with regard to a taxpayer bailout. According to a report in the Guardian, Barclays is set to hold talks with the Government with regard to taking part in its Asset Protection Scheme, which insures against losses arising from toxic assets. [...]

March 9, 2009 | 0 Comments More
RBS in third rescue package as it moves closer to nationalisation

RBS in third rescue package as it moves closer to nationalisation

Royal Bank of Scotland (RBS), which today entered the history books with the largest UK corporate loss, is set to receive a further £13 billion injection from the Government in return for more shares. The latest injection of funds means the taxpayer’s stake in Britain’s second largest bank could reach as high as 95% and [...]

February 26, 2009 | 0 Comments More
Taxpayer to own 43% of merged Lloyds Banking Group

Taxpayer to own 43% of merged Lloyds Banking Group

The new Lloyds Banking Group, formed by the merger of Lloyds TSB and HBOS, is set to be 43.4% owned by the taxpayer, after investors bought just 0.5% of shares on offer from Lloyds TSB and 0.24% of stock on offer from HBOS. The new banking giant is set to commence trading next week, subject [...]

January 12, 2009 | 0 Comments More
Two banking giants were on verge of collapse, reveals BBC’s Panorama

Two banking giants were on verge of collapse, reveals BBC’s Panorama

According to the BBC’s Panorama programme, The Year Britain’s Bubble Burst, screened last night, HBOS and RBS were on the brink of collapse in early October. The programme unveiled that the banks were finding it difficult obtaining short-term funding. It is believed that the banks would have collapsed without the funding and were forced to [...]

December 23, 2008 | 0 Comments More
Taxpayer owns almost 60% of RBS

Taxpayer owns almost 60% of RBS

Due to the small take-up of its £15 billion share offer by investors, the Government is to own 57.9% of Royal Bank of Scotland (RBS). This was widely expected as shares in the bank were trading below the 65.5p offer price announced last month. Last week, shareholders voted by 99% in favour to take the [...]

November 28, 2008 | 0 Comments More