ANALYSIS | WHERE THE RING-FENCE WILL FALL September 12, 2011 Mandated in a ring-fenced bank Taking deposits from and providing overdrafts to individuals and SMEs. Permitted in a ring-fenced bank Taking deposits from and providing overdrafts to ANY customer within the EEA, including providing current accounts, savings accounts and investment products that do not give rise to the ring-fenced bank being required to hold regulatory [...]
Vickers could defuse bank policy row September 12, 2011 TENSIONS between Conservatives and Liberal Democrats over implementing the Vickers Commission’s ring-fence proposals could be defused by leaving much of the detail to regulators. Chancellor George Osborne vowed yesterday to give clarity on exactly how he will implement the Vickers Commission’s proposal for a ring-fence around retail banks by the end of the year. But [...]
At a glance: everything you need to know from the Vickers report September 12, 2011 ICB: THE BENEFITS OF RING-FENCING Sir John Vickers, chair of the Independent Commission on Banking (ICB), stuck to his guns in insisting that his ring-fence proposal is the best way to ensure Britain’s banks are more stable and do not require costly bailouts if they fail. His main argument is that a ring-fence will make it easier to [...]
Reaction | Focus on Vickers September 12, 2011 THE BUSINESS LEADER CONFEDERATION OF BRITISH INDUSTRY DR NEIL BENTLEY “The UK is going it alone on ring-fencing, so the government must rigorously examine how and when to implement these proposals, otherwise it risks damaging businesses and threatening growth. The Commission is right to recommend a flexible approach to ring-fencing and suggest a reasonable time frame for [...]
Report claims it could have saved banks September 12, 2011 SIR John Vickers yesterday claimed that reforms proposed in the final report from the Independent Commission on Banking might have helped avoid collapse of banks such as Northern Rock and Lehman Brothers, which have since been deemed “too big to fail”. “While intended as systemic reforms for the future,” said the report, “it is still [...]
Vickers reforms will worsen the effect of financial jobs slump on the UK economy September 12, 2011 UNCERTAINTY over how structural changes proposed in the ICB report should be implemented will leave banks reluctant to hire, adding to the drag that the financial sector is having on UK job creation. After a upturn in banks hiring six months ago, optimism is the sector is now way down, according to the latest employment [...]
Lower returns, in return for what? September 12, 2011 READING most papers this morning might lead you to believe that you have awakened in a brave new world for Britain’s banks. This is a world where stable retail lenders are “insulated” from “global shocks” brought on by reckless investment bankers and one where taxpayers are finally off the hook for bank losses – thanks [...]
CITY VIEWS: ARE YOU WORRIED ABOUT THE PROSPECT OF MORE BANK RULES? September 12, 2011 HANOZ TAJMIGAR | MAXFIELD “Yes; ring-fencing retail arms of banks is a panic decision. I think that increased regulation of banks will have a negative effect on the public and it will ultimately harm the financial recovery, and even harm bank lending.” JOHN MACKINNAN | BPL “In the short-term I am worried about the proposed [...]
Concern over Eurozone hits the markets September 12, 2011 JITTERY markets were shaken yesterday over escalating fears of a potential default by the Greek government and subsequent contagion spreading to other Eurozone states. The yield on Greek one-year bonds exploded past the 100 per cent mark, rising nearly a fifth to over 117 per cent. Investors are demanding more than double their money back [...]
ECB’s bond buys reach total of €143bn as Stark resigns September 12, 2011 THE EUROPEAN Central Bank’s controversial purchases of government bonds picked up pace last week as one of its top policymakers was preparing to quit the bank over the programme. ECB figures published yesterday showed the bank bought €14bn worth of bonds during 1-7 September, up from €13.3bn the previous week and taking the programme’s total to [...]
