January 8, 2009
Print my money
Story link: Print my money
The base rate has been destined to fall for the last month or so and is likely to keep falling the way the curreny economy in the UK is going.
Surely printing money isn’t the last option though?
THE Government may resort to printing extra money if interest rates keep falling.
It is being considered as a desperate measure if base rates fall so far that they cease to work as an economic lever.
ECB says no to Britain in the Euro
Story link: ECB says no to Britain in the Euro
I should this we probably don’t meet the criteria, looking at current levels of debt and the possibility of a lot more in the future, why would a currency that has a lot more stability than ours want to let us in on the deal.
ECB says no to Britain in the Euro
“Great Britain does not meet the entry criteria for the euro,” said Lorenzo Bini Smaghi, the ECB’s board member in charge of international affairs.
“The public deficit will rise to around 6pc (of GDP) in 2009 and even higher in 2010. Sterling’s exchange rate is not yet sufficiently stable,” he told Italy’s La Repubblica newspaper.
More trouble in the banking sector
Story link: More trouble in the banking sector
Any mention of unemployment is not a good sound to the UK economy’s ears, although if a company is just chopping back the minority to save the majority, then I suppose that could be classed as positive.
More trouble in the banking sector
UK firm Cattles, which offers loans to risky borrowers, is planning to cut 1,000 jobs after its business was hit by the effects of the credit crunch.
The sub-prime loans firm says it must cut costs as it expects its Welcome Finance personal lending arm to cut new business by three-quarters this year.
December 31, 2008
Credit Crunch UK
Story link: Credit Crunch UK
As suggested it would be nice to see the UK economy pull together to make things positive on the other end of the recession, but lets face it, every company or small business is out to protect themselves and nothing else, so unless it is in their best interest, they won’t be chipping in to help out.
The credit crunch and the looming recssion could prompt Britons to pull together, Vincent Cable said today.
The Liberal Democrats’ Treasury spokesman said that he hoped a positive would come out of the banking crisis that marked 2008.
Aberdeen AM to buy Credit Suisse assets for 250M
Story link: Aberdeen AM to buy Credit Suisse assets for 250M
Its good to see companies diversifying and expanding in times of a financial crisis, especially in the banking sector, which is so troubled at the moment.
This is a huge deal and could help Aberdeen Asset Management PLC get through the crisis if the deal goes through smoothly.
Aberdeen AM to buy Credit Suisse assets for 250M
The U.K.’s Aberdeen Asset Management PLC (ADN.LN) said Wednesday it will acquire certain Credit Suisse Group fund management activities in an all-share deal worth up to GBP250 million.
The move will give Swiss banking giant Credit Suisse a 24.97% stake in Aberdeen and is expected to be finalized by the end of June, the fund manager said.
December 30, 2008
Taiwan and China banking pact
Story link: Taiwan and China banking pact
Its good to see two large forces coming together and working to make things right in times of economic crisis.
However this may not have the positive they hope, what about the banks that are already operating, surely they will be subject to a smaller market share?
Taiwan’s government expects negotiations with Beijing to enable as many as a dozen Taiwanese banks to begin operating next year in China, offering a new but potentially risky opportunity for one of Asia’s largest banking sectors, the island’s chief financial regulator said in an interview.
Sean Chen, chairman of Taiwan’s Financial Supervisory Commission, said on Monday that talks with China are proceeding toward an expected agreement sometime in the first half of 2009 on liberalizing banking ties between the two long-time rivals.
Bank License revoked
Story link: Bank License revoked
We are going through a period where we will see many banks and businesses fail, but those who come out the other side of it in one piece will be the clear winners, with a much larger market share than before.
Russia’s central bank said on Tuesday it had revoked the licence of Agrochim, with the Moscow-based bank unable to meet creditors’ demands.
The central bank has withdrawn around 20 banking licences since the end of August as mistrust and the liquidity crisis take their toll on Russia’s 1,000-plus banking sector.
Outlook is good for banks
Story link: Outlook is good for banks
US banks have fallen victim to the media hype that is surrounding the credit crunch and decreasing the value of products, shares and so on. The first part of 2009 will be a decisive factor to the stablisation of the economy and not just in the US, but world wide as well.
The U.S. banking sector may be considerably stronger than what conventional wisdom suggests, and the decline in bank stock prices has been excessive as many of these stocks represent “excellent” values, according to veteran banking analyst Richard Bove.
U.S. government programs will work and the negative assumptions concerning the weakening of the economy may be excessive, the Ladenburg Thalmann analyst said in a report that reviewed the banking industry based on data from the Federal Deposit Insurance Corp for the third quarter of 2008.
BOE had it coming
Story link: BOE had it coming
Of course the banks saw it coming, they saw it long before we did, but making things like this public are never a good option, especially for someone with the profile of BOE.
Yes they saw it coming, but that doesn’t mean the crunch was their fault, although the current stall in the economy could be down to the lack of credit, due to the new strict criteria.
Looking back in our archives this Christmas I came across a rather important article which I had half forgotten about. It dates from 2006, when the credit crisis was a mere apple in the financial system’s eye and the City was enjoying one of its biggest booms in history. The article, which can be found here, reveals that the Bank of England knew precisely what risk was posed by the dangerous build-up of debt which was brewing in the economy.
December 29, 2008
Banks in trouble, again!
Story link: Banks in trouble, again!
This is getting beyond a joke, as I can only guess who will be footing the bills to keep the banks trading!
If the banks decide to lend ridiculous mortgages to payers that simply can’t to afford to pay it back without the value of their property, then whos fault is that!?
Britain’s banks face up to £70bn of losses on commercial property loans, enough to force some of them into a further round of taxpayer bail-outs.
Investment bank Close Brothers forecasts massive writedowns in light of its forecast 50pc-60pc slump in commercial property values by the end of 2009 compared to the market’s 2007 peak. Most property experts believe such values have already dropped 30pc this year.