ROYAL Bank of Scotland cut lending to small and medium-sized enterprises by another £737 million in the first quarter under a scheme meant to encourage banks to provide more money for businesses, official figures show.
DAILY TELEGRAPH By Szu Ping Chan8:00PM BST 27 May 2014
Mark Carney, Governor of the Bank of England, says fundamental flaws in the industry can only be resolved by changing how markets operate.
Jailing bankers for market manipulation or clawing back pay and bonuses will not be enough to curb future misbehaviour or restore public trust in the financial system, the Governor of the Bank of England has said.Despite a new crackdown on reckless bankers, Mark Carney said fundamental flaws in the industry could only be resolved by changing how markets operate. Read more
Mervyn King, former governor of the Bank of England, has warned the City will have another Fred Goodwin figure unless the banking system is overhauled.
Mr Goodwin was blamed for the near-collapse of the Royal Bank of Scotland (RBS) in 2008, when it was forced to accept a £45bn taxpayer funded bail-out. The ex-RBS boss had grown the bank to the fifth largest in the world before it crumpled under the weight of its huge exposure to the sub-prime mortgage crisis in the US.
Lord King said the City risked becoming complacent to the risks in the system by scapegoating Mr Goodwin.
“If all we do is think that Fred Goodwin was to blame, the big risk of that is that we say, well, Fred Goodwin has gone now so everything will be all right. But it isn’t,” he said, speaking at the Hay Festival. Read more
By ALEX HAWKES, FINANCIAL MAIL ON SUNDAY
PUBLISHED: 12:13, 25 May 2014
Royal Bank of Scotland should have been completely nationalised at the height of the financial crisis, a senior Minister at the time has admitted in a new book on the banking meltdown.
Lord Myners, who was Treasury Minister and oversaw the bail-out of both RBS and Lloyds in 2008 and 2009, admitted that with hindsight RBS should have been taken over and split into a good and bad bank, like Northern Rock.
21/05/14 by Ian Fraser
In an unprecedented move, taxpayer-backed Lloyds Banking Group is suing Government-owned Royal Bank of Scotland over the Gogarburn-based bank’s “misleading” £12 billion rights issue.
In what is seen as the first American-style class action to hit the English courts, Lloyds, which is suing RBS through nine of its pensions and investment management subsidiaries, has joined more than 40,000 individual and institutional investors already seeking redress from RBS.
Lloyds’ £420million claim takes the total for all investors suing RBS in the High Court of Justice of England and Wales over the rights issue to nearly £5bn.
[SBCB Comment] – THE CLIFFORD CHANCE REVIEW para 5.32 STATES ‘In our review, we did not test the accuracy of the bank’s valuation methodology. As the Tomlinson Report observes, ‘valuation is an art, not a science ‘.
What was Clifford Chance thinking when it quoted Lawrence Tomlinson the ‘care home owner’, rather than a member of RICS?
Michael Newey president of the Royal Institute for Chartered Surveyors (RICS) talks about the new International measurement valuation standards and enforcing those standards. This conflicts with the Clifford Chance review of RBS GRG and West Register, which uses a quote from a care home owner Lawrence Tomlinson to convey that that ‘valuation is an art, not a science ‘. it would clearly be very difficult to ‘enforce an ‘art form‘ especially across countries. Is the Clifford Chance review deliberately misleading its readers? Click here to see the interview!
KEISER REPORT – In the second half, Max interviews HBOS whistleblower Paul R. Moore about the book he is writing, ‘Crash Bank Wallop’, and about the latest in the case against HBOS, the bank which required tens of billions of pounds of taxpayer money after dodgy loans went bad and which Paul Moore says was not a force but a farce in banking as growth at all cost literally cost everything.
15-04-14 –15.05 minutes in, Ex Barrister & Head of Regulatory Risk & HBOS, whistleblower Paul Moor talks about the culture at HBOS and also RBS & RBS GRG. (RBS GRG 25 minutes in).
BY MARGARET CANNING – 15 MAY 2014
Ulster Bank has said it “strongly refutes” allegations in a BBC Spotlight programme that it put viable companies into a restructuring division to make profit.
However, BBC NI said it “stands by” its journalism in Tuesday night’s broadcast, which interviewed property developers Brian Polly and Michael Taggart – who is in a prolonged legal battle with his former funders.
The BBC said it had taken “great efforts” to represent Ulster Bank’s views in the programme, which also featured businessman Lawrence Tomlinson.
by Ian Fraser May 12th, 2014
Royal Bank of Scotland is, once again, discovering that it is unable to operate above the law.
On Friday, a U.S. judge ordered the Edinburgh-based bank to stop using a software program that underpins its trade finance division, after finding the bank had been infringing the system’s copyright for six years.
U.S. District Judge Katherine Forrest imposed a permanent injunction on RBS, requiring it to completely stop using the BankTrade software within a year, and not to use the software to process any new transactions from July.
In last Friday’s ruling, Judge Forrest said the bank’s ABN Amro NV arm (part of the Dutch bank that RBS acquired in October 2007) had committed “six years of uninterrupted infringement”. A hearing over damages is due to take place on June 5. Read more
BBC Spotlight –
Hard-hitting investigations on the major stories affecting life in Northern Ireland. Jennifer O’Leary investigates claims that The Ulster Bank (parent RBS) forced businesses into insolvency. GRG insider: businesses we destroyed “were casualties of war in our bid to make the bank more liquid”