Rock cleared to write loans July 1, 2009 NORTHERN Rock has been cleared by the Financial Services Authority (FSA) to keep lending, despite breaching its minimum capital requirements. The FSA had already granted the nationalised mortgage lender a waiver to write new mortgages despite its low levels of capital, permitting the bank to include tier two capital – a riskier type of cash [...]
INVESTMENT BANK PROFITS BOUNCE BACK June 30, 2009 THE WORLD’S best investment banks have clocked up bumper second quarter profits, reaping the benefits of a renewed focus on trading and capital markets underwriting, as well as the implosion of many rivals. While many institutions – such as RBS and Citigroup – are still finding conditions tough, a group of six is emerging as [...]
House prices in Britain rise again in June June 30, 2009 HOUSE prices saw a monthly increase of 0.9 per cent in June, bringing the annual rate of decline to 9.3 per cent from 11.3 per cent in May, according to data published yesterday by Nationwide, which stoked optimism that the housing market has turned. The mortgage lender said that the three month rate of change, [...]
Home lending still difficult, warns Bank June 29, 2009 MORTGAGE lending saw its weakest rise on record last month, according to the Bank of England, signalling the squeeze on home lending is far from over, despite recent signs that the property slump could be levelling out. The number of home loan approvals rose for the fourth consecutive month in May, climbing from 43,191 in [...]
Treasury committee readies itself for inquiry into availability of mortgages June 28, 2009 THE TREASURY committee will this week begin its inquiry into mortgage arrears and the availability of home lending, as part of its ongoing series of evidence sessions on the banking crisis. The influential group of MPs, led by Labour’s John McFall, is seeking evidence on the extent of the mortgage arrears problem, including information on [...]
Treasury appoints B&B valuer June 24, 2009 The Treasury has appointed PricewaterhouseCoopers (PwC) valuation expert Peter Clokey as independent valuer for the Bradford & Bingley compensation scheme. Shares in the mortgage lender were transferred into temporary public ownership last September as it neared collapse. Clokey will now lead a PwC team to determine the value of any compensation payable to shareholders of [...]
Fitch highlights negative equity June 22, 2009 A report by credit agency Fitch Ratings will today say that one in 10 borrowers with excellent credit ratings are trapped in negative equity, owing more on their mortgage than the value of their homes. The agency will also forecast a peak-to-trough fall in house prices of up to 35 per cent. The report, which [...]
Fewer Brits to lose home this year June 22, 2009 FEWER homeowners will face having their houses repossessed in 2009 than previously thought because of low interest rates and government intervention, the Council of Mortgage Lenders (CML) said yesterday. The CML said it has cut its prediction for the number facing repossession this year to 65,000 from 75,000, but this is still much higher than [...]
Poor data is a threat to UK’s green shoots June 18, 2009 A HOST of poor data released yesterday cast doubt over the prospects of Britain’s fragile economic recovery. The figures caused the pound to slip to a one-week low against the euro and gilt yields to edge higher. Retail sales fell unexpectedly in May by 0.6 per cent after an upbeat April thanks to a late [...]
SUSTAINABLE BANKING IS WAY FORWARD June 17, 2009 MOORAD CHOUDRYHEAD OF TREASURY, EUROPE ARAB BANK THE financial crash of 2007-2008 was caused by the interaction of several different factors, some of which had been building for years. Since then markets have entered a period of restructuring that reflects the realities of the crash: key to this is an awareness that much of the [...]