HBOS Whistleblower Paul Moore Forecasts Second Banking Crash
24 May, 2011Paul Moore was the former head of regulatory risk at HBOS, who in 2005 approached the company’s executives and warned them repeatedly that they were taking risks with financial stability and consumer protection. The board promptly reacted to his warnings by sacking him. Paul Moore fears a second banking crash unless action is taken, according [...]
Cameron Urges Banks to Lend More
19 May, 2011David Cameron has warned banks they might face new taxes unless they keep their side of a deal and start lending more to businesses, according to Financial Times, May 17 2011 Mr Cameron suggested he would regard any reneging on the lending agreement, known as Project Merlin, as a personal betrayal and that it could [...]
Bank of England Votes to Hold Interest Rates
19 May, 2011Bank of England policymakers remain split on rates, according to the BBC on 18th May 2011 "Bank of England policymakers voted six to three in favour of keeping rates on hold at a record low of 0.5% this month, minutes of the Monetary Policy Committee's (MPC) May meeting show. It is the fourth month in a [...]
USA Reaches Its Debt Limit
18 May, 2011The U.S. government hit its $14.3 trillion debt limit Monday 16th May. Running up debt at the rate of roughly $2 million every single minute, it crashed into the nation's legal debt ceiling. The debt limit was set in 1917 to allow the US extra borrowing power to aid its entry into World War One, [...]
Labour MP Michael Meacher: When are the banks going to be reformed?
16 May, 2011Michael Meacher,Labour MP for Odlham West and Royton writes about our proposal on his blog: "It is astonishing that the banks, having cost the country £68bn in bailouts plus an additional £850bn in loan guarantees, asset protection schemes and enhanced liquidity, have not been reformed in any way in structure, pay, bonuses or lending. .... An [...]
Debt Will Hit £84,000 a Family in Four Years
11 May, 2011Mortgages and credit cards are pushing borrowing to record levels. From Daily Mail on 22nd April 2011 "Families will be crippled by a spiralling debt crisis over the next four years, equal to an average of £84,000 per household. By 2015, total household debt from mortgages to loans and credit cards will hit a record-breaking [...]
World Bank: Food prices have entered the 'danger zone'
11 May, 2011Rising food prices could "condemn a generation to extreme poverty and malnutrition", according to the Daily Telegraph on 14th April: "Robert Zoellick, World Bank president, said food prices are at “a tipping point”, having risen 36pc i n t he la st year to levels close to their 2008 peak. The rising cost of food [...]
What a Functional Banking System Looks Like – Tony Greenham of NEF
11 May, 2011Last month, the Independent Commission on Banking released its interim report. Many of the recommendations were welcome, but unless the Commission considers more serious structural reform further financial failure is likely. Tony Greenham, of the New Economics Foundation and a co-author of our submission to the Banking Commission explains what a functional banking system looks [...]