Co-op fears it will fail Bank of England stress tests

The troubled Co-operative Bank is this week likely to fail key ‘stress tests’ designed to probe the ability of Britain’s biggest lenders to withstand another financial storm.
Chief executive Niall Booker has already said it would come as ‘no surprise’ if the loss-making operation were to flunk Threadneedle Street’s tests.
Results of the tests, which model extremely bleak scenarios including a house price fall of 35 per cent and rocketing unemployment, are due tomorrow.
Co-op Bank, which is now largely owned by […]

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By |December 15th, 2014|BoE, co-op|0 Comments

Whistleblower Royal Bank of Scotland escapes Libor fine

Royal Bank of Scotland has escaped €115m of fines for alerting the European commission’s competition watchdog to two attempts to fix the prices of key interest rates.
RBS, which is 81%-owned by the taxpaer, was fined £390m last year for manipulating Libor by regulators in the US and the UK. It was given immunity from one €110m fine after telling the commission it had tried to influence Swiss franc interest rates with JP Morgan. The Wall Street bank was fined […]

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    Six years after Lehman’s crash, US and UK play out next financial crisis

Six years after Lehman’s crash, US and UK play out next financial crisis

War game designed to test readiness of central banks as exercise will stress-test new global regulations.
The top financial brass from the Treasuries and central banks of Britain and the US are to take part in a war game, behind closed doors in Washington on Monday, to test how they would handle another Lehman Brothers-style banking crisis .
Six years after the financial earthquake that led to the multibillion-pound taxpayer bailouts of Royal Bank of Scotland and Lloyds Banking Group, the […]

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BOE prospect of interest rate rise in 2014

The prospect of a pre-Christmas increase in interest rates rose after two members of the Bank of England’s key policy-making body broke ranks and voted for higher borrowing charges.
City dealers said it was possible that rates could be lifted from their emergency level of 0.5% by the end of the year, as three years of unanimous 9-0 decisions at Threadneedle Street ended with Martin Weale and Ian McCafferty calling for the cost of borrowing to be raised by 0.25 percentage points.
Although the […]

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By |August 28th, 2014|All Banks, BoE|0 Comments
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    RBS chiefs accused of being ‘wilfully obtuse’ over evidence to MPs

RBS chiefs accused of being ‘wilfully obtuse’ over evidence to MPs

Allegations about the way Royal Bank of Scotland treats its small businesses have resurfaced after senior executives from the bailed-out bank were accused of being “wilfully obtuse” when giving evidence to MPs.
Andrew Tyrie, the chair of the Treasury select committee, issued a damning verdict on the evidence provided last month by two of the most senior directors of the 81% taxpayer-owned bank, which has been scrambling to defend its stance towards small business customers.
Chris Sullivan, deputy chief executive of […]

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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    Tomlinson: RBS Evidence to MPs ‘particularly surprising’

Tomlinson: RBS Evidence to MPs ‘particularly surprising’

The bank’s GRG unit has been an item of continued controversy for the bank. Derek Sach, head of the global restructuring group division, told MPs earlier this month that the unit was “absolutely not a profit centre” nor rough with its customers.
“Generally do believe we do good overall,” he told MPs on the Treasury select committee. Sach insisted that the bank “would never get any advantage from destroying a customer”, pointing out that GRG had lost £2.1 billion […]

RBS Accused Of Covering Up For ‘Corporate Psychopaths’

Protesters outside the RBS (Royal Bank of Scotland) annual general meeting in Gogarburn, Scotland, as The World Development Movement call on the bank to stop investing in coal mining. | Danny Lawson/PA Wire
Royal Bank of Scotland executives have been reportedly accused by shareholders of “covering up” for “corporate psychopaths” in their controversial business support unit.
The furious attack came at the state-owned bank’s annual general meeting (AGM) today, following a report by entrepreneur Lawrence Tomlinson, who accused the bank of […]

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    George Osborne at Mansion House: Muddled, Boastful and Upstaged

George Osborne at Mansion House: Muddled, Boastful and Upstaged

The chancellor offered only contradictions as he followed the Bank of England governor, Mark Carney.
When the chancellor of the exchequer made his annual speech at the lord mayor’s Mansion House dinner on Thursday evening, George Osborne was more than a little upstaged. The Bank of England governor, Mark Carney, had just given a dense and well-delivered speech, which included a surprise announcement about interest rates. Osborne’s address was the economics equivalent of Joe Pasquale taking the stage after Bill […]

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Chancellor announces Fair and Effective Markets Review

A joint review by the Treasury, the Bank of England and the Financial Conduct Authority (FCA) into the way wholesale financial markets operate.

The government is announcing further steps to raise standards of conduct in the financial system with a joint review by the Treasury, the Bank of England and the Financial Conduct Authority (FCA) into the way wholesale financial markets operate. Strong and successful financial services that set the highest standards are an essential part of building a resilient […]

By |June 18th, 2014|All Banks, BoE, FCA|0 Comments

Mark Carney – Jailing bankers will not fix bad behaviour

Jailing bankers for market manipulation or clawing back pay and bonuses will not be enough to curb future misbehaviour or restore public trust in the financial system, the Governor of the Bank of England has said.

Despite a new crackdown on reckless bankers, Mark Carney said fundamental flaws in the industry could only be resolved by changing how markets operate.

“Merely prosecuting the guilty to the full extent of the law will not be sufficient to address the issues raised,” Mr […]

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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    Budget Report: ‘Access to finance remains a problem for SMEs’

Budget Report: ‘Access to finance remains a problem for SMEs’

In its report into the 2014 Budget, the Treasury Committee has reiterated the difficulties SMEs face when seeking finance – something which is preventing some businesses from reaching their full potential and hindering the economy.
Robert Wood, Chief UK Economist at Berenberg Bank and witness for the Committee, said: “very poor availability of finance over the past few years has almost certainly prevented some rapidly growing firms from expanding.”

It’s a view shared by fellow witness, the Confederation of British Industry […]

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BoE was badly mistaken to trust banks, says Adam Posen

Ex-MPC member believes BoE staff had too much confidence that banks would regulate themselves and root out bad behaviour by traders

The Bank of England needs to abandon a culture of cosy chats and too much trust in banks following the latest financial scandal to hit London, former policymaker Adam Posen has said.

BoE Governor Mark Carney unveiled a major shake-up of its management on Tuesday, in part to tackle complaints from lawmakers that the central bank had been too slow […]

By |March 23rd, 2014|All Banks, BoE|0 Comments