The Edge

Richard Northedge takes on corporate finance

Archive for the ‘Banks’ category

Sir Fred’s knighthood was fair at the time

No-one would give Fred Goodwin a knighthood now, but that’s not a reason to take away the one he’s got. If the ex-banker loses his gong, then a lot of athletes, actors and artists should be ready to return theirs too.
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The lack of takeovers is unhealthy

Companies are in no mood for mergers and acquisitions but the lack of takeover lack of activity risks leaving world business in a poorer state for the economic recovery.
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How often can we raid the banks’ reserves?

Sir Mervyn King is last in line for making a grab on the banks’ reserves. The Bank of England governor wants our lenders to preserve their capital but every other policymaker has already made a play for them.
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Now all Europe’s dominoes are tottering

Originally there were 16 euro members bailing out Greece, but steadily nations have switched from the saviours to the salvaged. Germany looked like being the last strong man standing – but even it may have swapped sides.
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Northern Rock sale: 2010 was better but 2012 could be worse

Nevermind whether it would have been better for the government to sell Northern Rock next year, should it have sold in 2010? As the shares of quoted banks have halved this year, the answer – with the full benefit of hindsight – looks like yes.
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This isn’t the time for new banks

Whatever happened to the big banking shake-up? Tesco plc (LON:TSCO) has delayed launching current accounts; Metro has given just 100 mortgages and Virgin hasn’t yet bought a branch. The old order remains unchallenged.
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You can see why Horta-Osario missed the Lloyds results

As soon as Antonio Horta-Osorio went sick from Lloyds Banking Group plc (LON:LLOY) this blog suggested he might never return to the chief executive’s chair. Now investors too are realising that, but the revelation of a £3.9bn loss shows how desperately the bank needs a boss.
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Weak banks can’t sustain another new tax

Are Europe’s banks undercapitalised institutions that need rescuing – or over-profitable operations that can be milked? The European Union, like Britain’s government, really must make up its mind before imposing penalties on the banks.
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Vickers swaps yesterday’s problems for tomorrow’s

No-one wants the past system of banking, but do we want the one Sir John Vickers is proposing next? The words ‘horse’, ‘bolting’ and ‘stable door’ spring to mind.
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The banking commission should be pragmatic, not dogmatic

Is banking reform a necessity or a luxury? When Sir John Vickers was asked to review the UK banking industry it was part of the sector’s punishment, but now it looks as if he will be adding to the problem rather than solving it.
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