London Report: Bank falls stop FTSE’s nine-day winning streak October 23, 2013 THE UK’S benchmark equity index fell yesterday to end a nine-session winning streak, as a drop in heavyweight banking shares dragged the stock market down from five-month highs. Nevertheless, several traders felt any pullback would be relatively short-lived and saw the UK stock market rallying into the end of 2013. The benchmark FTSE 100 index [...]
Bottom Line: JPMorgan fine will discourage future rescues October 20, 2013 PUNISHING JP Morgan for the sins of the past might make regulators feel like they are cracking down on bad behaviour and getting tough on banks – but they risk storing up problems for the next crisis. Most of JP Morgan’s mortgage-related problems come from institutions it saved in the financial crisis, at the government’s [...]
Banks lent less to businesses in three months to August October 18, 2013 (Bank of England) The Bank of England's latest Trends in Lending survey shows that, whilst bank lending to businesses in the three months to August fell, mortgage approvals for households rose markedly. So did lending to individuals. (Release) Net lending to businesses of all sizes fell by £2.3bn over the period. Net lending to businesses [...]
Bank of England deputy fears surge in risky loans October 14, 2013 THE HELP to Buy scheme could leave house buyers dangerously overstretched by encouraging them to take out risky mortgages, the incoming Bank of England deputy governor warned yesterday. The mortgage guarantees on offer from the government mean banks will be protected against taking excessive risks, but borrowers could be encouraged to over-reach themselves, Sir Jon [...]
Lenders fear bubble if UK does not get more houses October 8, 2013 MORTGAGE lenders yesterday warned house building levels are still dangerously low, as the government’s new Help to Buy scheme launched with the backing of five banks, including HSBC. The scheme gives a government guarantee to buyers with a small deposit saved up, making banks more willing to lend and increasing the range of mortgages on [...]
What the other papers say this morning – 09 October 2013 October 8, 2013 FINANCIAL TIMES Prosecutors give SAC ultimatum US prosecutors have given SAC Capital until November to resolve criminal charges against the hedge fund founded by Steven Cohen or risk paying more than the $1.8bn offer on the table, people familiar with the matter said. Lawyers for SAC Capital met representatives from the US attorney’s office in [...]
Rates for Help to Buy unveiled October 8, 2013 Mortgage rates for the controversial Help to Buy initiative have been unveiled. RBS announced that it would be offering two and five-year fixed rate contracts at 4.99 per cent and 5.49 per cent respectively. Halifax is offering a two-year fixed rate of 5.19 per cent. The governments scheme will see taxpayers on the hook for [...]
US politicians need to grow up before growth is shut down October 1, 2013 IT is time for Americans to decide: do they want to be a social democracy, Eurozone style, with high levels of tax and public spending, or do they want to be a small state society, with low taxes and low levels of public spending? The partial government shutdown and the political warfare between Barack Obama [...]
Lenders to face crisis survival tests every year October 1, 2013 BRITAIN’S biggest lenders will be put through their paces every year to see if their capital buffers will keep them afloat through a range of possible economic stresses and strains, the Bank of England said yesterday. The new tests aim to make sure banks’ capital buffers are adequate, and to standardise the approach taken to [...]
Mortgage lending hits 2008 levels even before Help to Buy extension September 30, 2013 THE HOUSING market had begun picking up steam even before the government rushed forward the next stage of its Help to Buy scheme, Bank of England figures showed yesterday. In August, when lenders still believed that the latest set of mortgage guarantees would not be available until January, the number of mortgages approved rose to [...]