UK retail banks questioned by MPs on fraud levels

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An influential committee of MPs has asked the UK’s five leading high street banks to report on how they assemble fraud figures, in response to a claim that they understate the numbers by as much as half.
The Treasury select committee was told banks only report fraud if the money lost is irretrievable, neglecting to include large amounts of stolen funds that are recovered.

Andrew Tyrie, chair of the committee, which oversees financial legislation, has asked Barclays, HSBC, Lloyds, Santander and Royal Bank of Scotland for information about […]

Years On, Different Scandal, Same Problems

The numbers are once again staggering, the arrogance breathtaking. Yes, it’s another week, another banking scandal. Channel 4 News’ economics editor, Paul Mason, expressed what many felt when he went into something of a rage while reporting on the latest banking scandal from outside the offices of RBS. Mason later explained that the clip that was aired was filmed after he had had time to calm down, so exasperated was he that so little had changed in the last […]

Bankers Escape Justice

Even after PPI, forex and the financial crisis, many of the directors who presided over scandal remain in public life.
There was a time when bank bosses took at face value Ogden Nash’s satirical poem Bankers Are Just Like Anybody Else, Except Richer. Not any more. These days most bank executives realise they are different in that their actions can blow up the global economy, bring nations to their knees and impoverish millions.
City watchdogs say they also grasp that global […]

Lloyds and Barclays top bank complaints

New figures show two banks attracted over 56,000 new complaints in first half of this year.
Lloyds Banking Group is the banking group the Financial Ombudsman Service received most complaints about, according to its latest figures, while Barclays generated the highest percentage of complaints per customer.
Between January and June this year, over 30,000 people complained to the Ombudsman about the Lloyds group, which includes Lloyds Bank and Bank of Scotland. And nearly 27,000 people complained about Barclays.
The Ombudsman is where […]

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    RBS CEO Ross McEwan – Deception is Common Industry Practice

RBS CEO Ross McEwan – Deception is Common Industry Practice

Britain’s biggest banks have admitted sending thousands of letters from fake debt collection agencies in a deliberate attempt to intimidate customers into paying up.
In a series of letters to the Commons Treasury committee, several of the biggest names in banking admit they have sent misleading letters to tens of thousands of customers who are struggling to repay their debts.  They now face the prospect of a full-scale inquiry by MPs, who have condemned the ‘menacing’ practice.  Andrew Tyrie, Tory […]

Bankers’ bonuses – 100 times higher than public sector

Bankers’ bonuses were more than a hundred times higher than public sector workers over the past year and grew at double the rate of those of the average UK worker, official figures have showed.
The average bonus for bankers and insurance workers was £13,300 between May last year to April, while that of public sector workers such as nurses and teachers was the lowest at around £100 on average.  The figures are likely to prompt further calls for stricter rules […]

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Banking sector slow to increase competition after new rules

A relaxation in the rules governing the creation of new banks is yet to lead to a dramatic increase in the number of new high street players being authorised by the City regulator.
Figures published by the Bank of England show little change in the annual approval rate for new banks since the introduction of rules last year, which mean that new banks need less capital to get started than they did in the past.
Five banks were authorised in the […]

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Gates remain open for scandals

THE UK faces the risk of further banking scandals, unless action is taken to increase competition in the lending market for small and medium-sized businesses, according to a Government adviser.
Lawrence Tomlinson, the Yorkshire entrepreneur and Government adviser who compiled a dossier of complaints against RBS’s turnaround division, made the comments in response to reports that the Government is going to urge the big banks to increase the supply of SME (small-and-medium-sized business) loans.
The report in the Sunday Telegraph said […]

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    Barclays Shareholders Warn Bank It Is ‘Telling Customers To Go To Hell’

Barclays Shareholders Warn Bank It Is ‘Telling Customers To Go To Hell’

Barclays is “telling customers to go to hell” rather than becoming the “go to” bank, shareholders warned bank bosses during an angry annual general meeting in London today.
Barclays bosses faced shareholder anger as a succession of speakers were applauded when they criticised the bank’s remuneration policy. One mockingly asked if the bank’s overdraft fees were a sign that Barclays should “get ready to merge” with payday loan giant Wonga. Barclays recently defied calls for restraint over its executive pay and bonuses […]

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  • Signs welcome shareholders to the Barclays' AGM in central London

Whistleblower reveals errors in Barclays PPI calculations

Barclays has launched an investigation after a whistleblower warned of serious errors in the way taxation of interest paid to those handed payment protection insurance compensation is being calculated by the bank.

Barclays confirmed the inquiry in the wake of allegations tabled by a former contractor, Charlie Boyle, who has alerted the Financial Conduct Authority’s whistleblowing hotline to the issues.

Mr Boyle, who was a team leader handling financial reconciliations – or making the numbers add up – said his department […]

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Osborne Accused of Handing Big Banks ‘Secret Tax Cut’

Chancellor’s pledge to introduce new bands for the bank levy mean some big banks could end up paying hundreds of millions of pounds less in tax.
Britain’s biggest lenders are in line for hundreds of millions in tax cuts under proposed changes to the bank levy after complaining that the burden fell disproportionately on domestic institutions.

Barclays and HSBC could see their levy charges fall by a combined total of more than £300m if the Treasury goes ahead with plans to […]

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    Bankers’ bonus cap architect says EU must sue UK government

Bankers’ bonus cap architect says EU must sue UK government

MEP calls on European commission to take UK to court for allowing banks to ‘blatantly’ sidestep EU rules limiting bonuses
One of the architects of the EU’s cap on bankers’ bonuses has called for the UK government to be sued for allowing banks to sidestep the new rules as two more high street banks were preparing to hand their bosses up to £1m in extra pay to avoid the clampdown.
Philippe Lamberts, the Belgian Green MEP who helped devise the restrictions, […]

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    RBS, NatWest & Barclays – No service as mobile apps crash on the same day

RBS, NatWest & Barclays – No service as mobile apps crash on the same day

If you run accident prone Royal Bank of Scotland, the golden rule ought to be never boast.
Some 24 hours after chief executive Ross McEwan extolled the virtue of the bank’s mobile app, arguing that his busiest branch in 2014 is the 7.01am from Reading to Paddington when 167,000 passengers clicked on, the system went down.
RBS with its 2.7million or so mobile app users was not alone. By unhappy coincidence up to 3million Barclays customers also were caught up in […]

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    Bosses of Britain’s biggest banks are on course to be awarded millions

Bosses of Britain’s biggest banks are on course to be awarded millions

The bosses of Britain’s biggest banks are on course to be awarded millions of pounds in share payments to circumvent a Brussels-imposed bonus cap – a move that risks inflaming the toxic row over City pay deals.
The new payments would be in addition to bank leaders’ basic pay because the EU is limiting bonuses to 100% of salaries – or 200% if shareholders approve larger payments.
The big-four high street banks are consulting shareholders about bonuses for chief executives that […]

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    Lloyds Banking Group chief António Horta-Osório gets £1.7m bonus

Lloyds Banking Group chief António Horta-Osório gets £1.7m bonus

Lloyds CEO António Horta-Osório is taking a £1.7m bonus for 2013 – his counterparts at RBS and Barclays have waived theirs. 

Lloyds Banking Group has awarded its boss António Horta-Osório a £1.7m bonus after declaring itself “a normal bank” five years after its taxpayer bailout.

With preparations under way for a sell-off of part of the 33% remaining taxpayer stake, Horta-Osório played down the impact of Scottish independence on the bailed out bank which owns Bank of Scotland.

The Portuguese banker – who took the […]

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Bank of England cuts 100 jobs in biggest cull for a decade

Union expresses shock as review initiated by Bank governor Mark Carney focuses cuts on IT and HR staff

Pedestrians and workers outside the Bank of England. The Bank says it ‘envisages between 80 and 100 redundancies’. Photograph: Bloomberg/Getty

The Bank of England has announced its biggest jobs cull for more than a decade, with 100 positions to go as part of an efficiency drive.

The “value for money review”, which was launched shortly after Mark Carney arrived as governor last year, puts as many […]

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    Update on independent review of RBS’s treatment of business customers in financial difficulty

Update on independent review of RBS’s treatment of business customers in financial difficulty

The Financial Conduct Authority (FCA) has appointed Promontory Financial Group and Mazars to conduct an independent skilled persons report under section 166 of the Financial Services and Markets Act (FSMA) 2000.

The report will examine Royal Bank of Scotland’s (RBS) treatment of business customers in financial difficulty and consider allegations of poor practice set out in the report by Dr Lawrence Tomlinson and referenced in Sir Andrew Large’s report.

The first stage of the review will consider RBS’ treatment of a […]

Tomlinson Report

Lawrence Tomlinson published the findings of his report  in November 2013 on banks’ treatment of businesses. Lawrence’s report focuses on the large body of evidence he has received about RBS’ turnaround division, Global Restructuring Group (GRG).  He has uncovered very concerning patterns of behaviour leading to the destruction of good and viable UK businesses.     Lawrence, who is the Entrepreneur in Residence at the Department for Business, Innovation and Skills, is calling for further investigation into this behaviour by the […]

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    Labour calls on Coalition to rein in excessive Bankers bonuses

Labour calls on Coalition to rein in excessive Bankers bonuses

The Labour party has called on the government to act upon EU rules that would cap the bonuses paid to banking executives.
Chris Leslie MP, Labour’s shadow chief secretary to the Treasury, made the calls after reports that the cap is set to be doubled by the chancellor George Osborne.
He said that approving the increase “cannot be right” at a time when families are facing a cost of living crisis and bank business lending was “failing”.
“As the majority shareholder, the government should reject any […]

By |January 16th, 2014|All Banks, Barclays, RBS|0 Comments

RBS considers how to maintain Multimillion pound Bonuses

The Bank which is 81% owned by taxpayers is keen to keep pace with Barclays and HSBC, which plan to hand out ‘allowances’
Royal Bank of Scotland said it was consulting shareholders about pay, but had made no decisions yet.  The Bank risks fuelling the row over pay as it considers how to follow rivals that have devised ways to avoid the EU bonus cap and maintain their bankers’ multimillion-pound pay cheques.
The 81%-taxpayer-owned bank is keen to keep pace with […]

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By |January 16th, 2014|All Banks, Barclays, HSBC, RBS|0 Comments