Egg the bank owned by Citigroup fined £721,000

The online bank Egg, owned by Citigroup (NYSE:C) was found guilty of insurance mis-selling on its credit card payment protection insurance (PPI) to nearly half its customers over a three-year period by the Financial Services Authority (FSA).

According to the FSA around 40 percent of Egg customers who brought the controversial insurance between January 2005 and December 2007 are said to be mis-sold (read more…)

Category: Business News, Europe | December 10th, 2008 | Comments (0)

Lloyds TSB and HBOS Merger: Up to 40,000 could lose their jobs

Lloyds TSB (LON:LLOY) takeover of HBOS (LON:HBOS) could see 600 branches close and up to 40,000 jobs as the two banks merge to create the a UK superbank.

As the recession looms over the industry and the Lloyds and HBOS deal completes Mid-January the new merged bank titled Lloyds Banking Group will have to resume dividends, lift capital ratio and begin to shrink its balance sheet. Investors in Lloyds will be wanting a quick return to core strength (read more…)

Category: Business News, Europe | December 10th, 2008 | Comments (0)

Pound record decline against the Euro at €1.1391

Pound Sterling has tumbled to an all time low against the euro this morning at €1.1391, this comes as economists warn that the recession will be hitting the UK a lot harder than first expected and predict the outlook for 2009 is even more gloomy.

It’s been reported by the National Institute of Economic and Social Research (read more…)

Category: Business News, Europe | December 10th, 2008 | Comments (0)

Merrill Lynch & Co. losses and acquisition by Bank of America Corp

On Friday shareholders approved Bank of America Corp (NYSE:BAC) takeover of failed Securities firm Merrill Lynch (NYSE:MER), the deal will create banking giant in the financial system leading in most major areas, although the deal is highly risky.

Merrill Lynch agreed the to the merger with Bank of America Corp just one hour after Wall (read more…)

Category: Business News, US | December 8th, 2008 | Comments (0)

Merrill Lynch Executive asks for $10 million bonus

Chief executive Officer of Merrill Lynch & Co (NYSE:MER), John Thain has asked directors for a $10 million bonus for 2008 period, but according to sources the compensation committee of Merrill Lynch are likely to resist Thain’s request.

The Compensation Committee at Merrill Lynch said that they will be attending a scheduled meeting on Monday to listen to Mr Thain’s bonus request formally, along (read more…)

Category: Business News, US | December 8th, 2008 | Comments (1)

Bank of England’s Special Liquidity Scheme and High Levels of Issuance

According to the Bank for International Settlements the borrowing in the international debt securities market tumbled to $247 billion that’s a massive 77 percent in the third quarter of 2008 compares with the second quarter, this is due to the present market conditions.

Net issuance of money market instruments plummeted into negative territory (read more…)

Category: Business News, Europe, Global Economy | December 8th, 2008 | Comments (0)

Royal Bank of Scotland (RBS) accused of secretly changing customers overdrafts

Royal Bank of Scotland (RBS) has been under investigation regarding the secret changes it has made to customers accounts resulting in debts of almost £100,000.

The investigation revealed that RBS have been accused of changing customer’s accounts into personal loans and charging up to 80 percent interest, this comes just ten days (read more…)

Category: Business News, Europe | December 8th, 2008 | Comments (0)

Commercial Property: Values will decline 25 percent by 2011

According to the Royal Institution of Chartered Surveyors (RICS) the UK Commercial property market will not recover until 2011.

It’s also reported that the price of industrial properties, stores and offices will probably fall 25 percent by the end of 2010 due to the vacant properties increasing and the growth in commercial (read more…)

Category: Business News, Global Economy | December 8th, 2008 | Comments (0)

Lloyds TSB merger with HBOS faces legal challenge

Lloyds TSB (LON:LLOY) merger with Halifax Bank of Scotland (LON:HBOS) will come under a legal challenge today when the Competition Appeal Tribunal decides if the government made the right decision to bypass competition concerns allowing HBOS to be rescued, the hearing will begin at midday today (December 8).

The Merger Action Group (MAG) are the action group behind the challenge and consists of shareholders, bank customers and businessmen, however, HBOS have said they (read more…)

Category: Business News, Europe | December 8th, 2008 | Comments (0)

Bank of Scotland & Halifax brand to stay after merger

HBOS (LON:HBOS) group Halifax and Bank of Scotland will keep their brand names after the merger with Lloyds TSB (LON:LLOY) has gone ahead the bank announced.

Bank of Scotland will primarily be the brand used in Scotland, whilst Halifax will run along with Lloyds TSB brand in England and Wales. The new Lloyds Banking Group will become the largest branch network in the (read more…)

Category: Business News, Europe | December 5th, 2008 | Comments (0)