Savers slured lured into a £9billion gamble


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Savers slured lured into a £9billion gamble

Savers slured lured into a £9billion gamble
Cautious savers who have been lured into gambling their money on fiendishly complicated stock market investments have lost out on thousands of pounds due to poor performance and sales commission, it has been revealed.
Daily Mail, p. 38-43

Lending puts savers at loss
Yesterday the boss of price comparison website slammed the Bank of England’s Funding for Lending scheme. Peter Plumb said the initiative to boost borrowing was hammering savers, resulting in fewer people searching for best-buy deposit accounts. He told Your Money: “Banks don’t want to attract savers’ money because they can borrow funds so cheaply from the Government. The losers are the people with savings.”
Daily Mirror, p. 40

It has been revealed that pensioners miss out on £1billion worth of crucial extra income each year when cashing in private pension savings – but that could all be about to change. Retired people are already being hit hard during the tough economic climate with dropping incomes and escalating prices for all the basics. The Association of British Insurers has launched a new code that will force its members to be more transparent to help people get the best from their savings and make better-informed choices.
Daily Mirror, p. 36-37

The Association Of British Insurers has introduced a code which will explain the options for soon-to-be pensioners. ABI director general Otto Thoresen said: “Increasing life expectancy means many people will be receiving a pension for longer than they were paying a mortgage. “So the need to make the right decisions at retirement has never been more important.”
The Sun, p. 36-37

Buyers who need quick loans ‘lose in mortgage war’
According to broker Coreco, homebuyers who need a quick mortgage are increasingly seeing their purchases scuppered by lenders taking too long to process applications.
Daily Mail, p. 46

Endowment shortfalls leave over 400,000 facing home sale
More than 400,000 homebuyers face huge endowment shortfalls of tens of thousands of pounds this year, leaving some families with no option but to sell their house.
Daily Mail, p. 45

Interest-only deals threaten next mis-selling scandal
Claims management companies, which have profited from payment protection insurance mis-selling, are investing in television campaigns to encourage people who may have been affected to seek redress.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 2

DESPITE the Bank of England’s […]
Despite the Bank of England’s Funding for Lending Scheme, banks are still playing it safe with first-time buyers, a study by has revealed.
The Sun, p. 36-37

Watchdog had 26 chances to spot rate fixing
The City watchdog missed dozens of chances to uncover the Libor fixing scandal, the regulator has admitted, delaying investigations into the offending banks.
City AM London, p. 4

HSBC sells US loan book for $3.2bn
HSBC has agreed to sell two portfolios of consumer loans in the US for $3.2bn (£2.1bn) in cash as it attempts to slim down its US operations.
City AM London, p. 5

Bank’s hiring spree may be over
It has always been tricky to dig up anything bad in Standard Chartered’s results. Yesterday’s record profit – the 10th year in a row, as if the crisis never happened – brought shareholders a return on equity up 0.6pc to 12.8pc and dividend growth of 10.5pc, even in the face of the £440m fine it booked last year for breaking US sanctions against trading with Iran.
City AM London, p. 5

Osborne was right to oppose the EU banker bonus cap
Despite failing to prevent European finance ministers agreeing to the policy in Brussels yesterday, George Osborne was right to oppose the EU’s proposed cap on bankers bonuses for a number of reasons says James Barty.
City AM London, p. 19

StanChart hits tenth year of record profits
Standard Chartered fears the new wave of bank regulations from Brussels could harm its global business, bank bosses warned yesterday, noting it is always reviewing its decision to remain domiciled in the UK. The emerging markets specialist had a strong 2012, reporting a 10th consecutive year of record income and profits, despite paying $667m (£441.2m) to US regulators to settle sanction-breaking claims.
City AM London, p. 3

Thousands of City workers could be hit by the EU’s planned bonus cap with brokers, asset managers and corporate financiers all under the cosh, as well as the bankers that politicians originally set out to attack, City A.M. can reveal.
City AM London, p. 1

PPI complaints on the rise
Complaints about mis-sold payment protection insurance (PPI) have more than doubled in 6 months, according to fresh official figures. The Financial Ombudsman Service (FOS), which settles disputes between banks and their customers, said that it received almost 212,000 PPI complaints in the second half of last year compared with just 85,500 in the preceding six months.
Daily Express, p. 40

EU threat to Osborne over banks
George Osborne has been left isolated after European Union finance minister promised to press ahead with plans to limit bankers’ bonuses. The proposed cap, due to come into force next year, has been put forward by the European Commission and Euro MPs in an attempt to curb the banks following the 2008 financial crash.
Daily Express, p. 8

HSBC sell-off
HSBC, the banking giant, has done a deal to off-load two consumer loan portfolios for £2.1bn as part of an accelerated rundown of its troubled US loan book.
Daily Express, p. 60

Penalties fail to slow profit at Standard
Standard Chartered bank has notched up its 10th successive year of record profits but cut bonuses after being hit by a fine for breaching US sanctions against Iran. The FTSE 100 firm reported pre-tax profits of £4.6bn for 2012, a rise of 1pc. Profits would have been 11pc higher but for last year’s £443m penalties by US authorities.
Daily Express, p. 57

Nationwide’s 5pc current account
Hundreds of thousands of Nationwide customers are set to earn 5pc on cash in their current account interest.
Daily Mail, p. 49

Banks reject 1,000 PPI claims a day
BRITAIN’s biggest High Street banks wrongly threw out nearly 1,000 complaints every day from victims’ mis-sold payment protection insurance last year. New figures from independent watchdog the Financial Ombudsman Service (FOS) reveal in some cases more than nine in ten cases thrown out by banks are being decided in the customer’s favour on appeal.
Daily Mail, p. 49

Osborne loses bid to block an EU cap on bank bonuses
As George Osborne was defeated over plans to bring in a cap on bankers’ bonuses, Michel Barnier, the EU commissioner for the single market, declared that “Enough is enough” and said that the plans would come into force in 2014. The Daily Mail reports that a Treasury spokesperson has claimed that it still hoped to make the cap more ‘flexible’, but conceded it could not now be blocked altogether.
Daily Mail, p. 2

Last year Standard Chartered’s profits grew despite being hit with a £440million fine for breaching sanctions on Iran. The London-listed bank, which makes most of its money in Asia, made £4.5billion last year – up a modest 1%.
Daily Mirror, p. 40

HSBC and its odd notion of clarity
City Spy column notes that everyone is interested in executive pay. So why didn’t HSBC publish figures for how many the bank earned more than £1 million last year? It was nowhere in 700 pages of annual results documents published yesterday. The bank’s flacks did admit, when pressed by journalists, that 204 staff earned more than a mill a year, even though profits fell 6%.
Evening Standard London, p. 36

FSA missed ‘two dozen’ clues about Libor-rigging
The Financial Services Authority has admitted that it missed at least two dozen direct references sent to it by banks about Libor-rigging during the financial crisis of 2007 to 2009. They included two direct phone calls from Barclays and 24 documents or calls which could have been interpreted as highlighting the fixing of Libor.
Evening Standard London, p. 33

Watchdog knew banks were Libor-fixing for years
The City watchdog yesterday admitted that staff had been aware of Libor-fixing for nearly three years before it finally launched an investigation into what has rapidly turned into banking’s biggest scandal.
Independent i, p. 43

Wegelin& Co., the oldest private bank in Switzerland, said Tuesday that it had been ordered to pay $74 million after pleading guilty to violating U.
International Herald Tribune, p. 21

Ignore the howls. If bankers leave, it would be no loss
The Guardian’s Simon Jenkins claims that Britain would not suffer unduly if the City of London lost a significant amount of its bankers as a result of the coming EU bonus cap.
The Guardian, p. 30

Dow hits new record as traders bank on Fed support
The US economy remains weak, with unemployment stubbornly high – but Wall Street put those concerns aside yesterday, as traders betting on continued central bank support propelled the stock market to an all-time high.
The Independent, p. 50-51

Shares reach record highs both sides of the Atlantic
Shares in London rocketed to levels last seen in early 2008 as strong economic data in Asia and North America and the promise of loose monetary policy lured buyers into equities.
The Times, p. 37

Upbeat services growth dims chance of triple dip
Concerns that the UK could slide into a triple dip recession were soothed yesterday as data showed Britain”s services sector grew more quickly than expected in February.
City AM London, p. 2

Shares bounce back to reach a five-year high
The FTSE 100 yesterday closed its highest point since January 2008, up 8 points to 6,432.
Daily Mail, p. 4

The above articles appeared on 06/03/13 reproduced with the kind permission of Kantar Media UK. All rights reserved.

Charterbridge Private Financial Planning, Independent Financial Advice, Thornbury, Bristol.