CIT warns of bankruptcy risk July 21, 2009 CIT GROUP yesterday warned it could still file for bankruptcy if a cash tender offer for its outstanding notes fails, one day after securing $3bn (£1.8bn) in emergency financing from its bondholders. The 101-year-old company, which lends to nearly a million small and mid-sized businesses, also forecast a second-quarter loss of more than $1.5bn. In [...]
THE FSA’S SHORT HISTORY July 20, 2009 The Financial Services Authority was born when former chancellor Gordon Brown overhauled the financial regulatory system following Labour’s landslide election victory in 1997. Brown’s revamp saw responsibility for banking supervision transferred to the FSA from the Bank of England, which had historically performed that function. The City watchdog later took on responsibility for regulating mortgages, [...]
CIT gets stay of execution July 20, 2009 THE board of stricken US lender CIT yesterday agreed a $3bn (£1.82bn) rescue loan from key bondholders, saving it from the jaws of bankruptcy. With the US government making it clear that CIT is not systemically important enough to warrant a bailout, the financing package is aimed at buying the bank time to restructure its [...]
Home loans hit six-month high in June July 20, 2009 GROSS mortgage lending hit a six-month high in June according to data released yesterday by the Council of Mortgage Lenders (CML). Figures from the CML showed that gross mortgage lending rose 17 per cent in June to £12.3bn from £10.5bn in May, but was still 48.4 per cent lower than in June 2008. Gross lending [...]
CIT cuts $3bn salvation deal July 19, 2009 US lending giant CIT Group last night cut an eleventh-hour deal with its key bondholders for $3bn(£1.8bn) in financing that will save the 101-year-old from the jaws of bankruptcy. CIT, which suffered a liquidity crunch and is straining under its multi-billion dollar debt load, now aims to restructure outside of court. The firm, which lends [...]
House prices boosted by fall in stock July 13, 2009 THERE were more definitive signs yesterday that the UK housing market is beginning to recover, according to June data from the Royal Institute of Chartered Surveyors (RICS). The seasonally-adjusted balance of surveyors reporting falling rather than rising prices improved to -18.1 in June from -43.8 in May, the highest reading since September 2007. Housing market [...]
WHAT THE OTHER PAPERS SAY THIS MORNING July 12, 2009 THE SUNDAYSThe Sunday TelegraphFOCUS DIY CHAIN FACES TOUGH CREDIT REVIEWA review of Focus DIY’s financial position will be delivered by Ernst & Young (E&Y) to the group’s lenders this Friday to help them to decide whether to continue backing the DIY retailer. Although the lenders, GMAC and HBOS, have agreed in principle to renew a [...]
Housebuilders hail stability but warn mortgage drought will hurt July 9, 2009 Barratt shows signs of stability as volumes pick up but mortgage drought continues Barratt Developments yesterday reported a 19 per cent fall in private house prices over the last 12 months and warned that a sustained improvement in training conditions would remain elusive until the availability of mortgage finance recovers. However, the group has witnessed [...]
Decline in UK house prices slows in June July 8, 2009 BRITISH house prices fell less than expected in June, Halifax’s monthly survey showed yesterday, but the mortgage lender warned that the outlook for the housing market remained uncertain. The Halifax data showed UK house prices falling by 0.5 per cent in June, compared to a 2.6 rise during the previous month. The annual rate of [...]
Taxpayer bill for Rock to rise July 6, 2009 The Treasury’s bill for Northern Rock’s losses looks set to increase, after one of the mortgage lender’s subsidiaries breached a contract, putting other creditors ahead of the taxpayer for repayment. Granite, a unit which securitised Northern Rock mortgages, will be forced to speed up the return of £26bn of debts to noteholders. Rock will be [...]