Britons struggle to save for rainy day


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Britons struggle to save for rainy day

Britons struggle to save for rainy day
A survey from Which? reveals that only a quarter of Britons are regularly saving money, and one in five has no savings at all. Almost half of those surveyed by Which? said they had no idea how they would cope with an unexpected expense.
The Times, p. 18

Force workers to pay into a pension, ministers told
The Pensions Policy Institute (PPI) has suggested that compelling workers to save for retirement may be the only way to ensure the looming pensions catastrophe is avoided. The ONS reports that only 16 million people out of the 30 million in employment currently have pension arrangements. The PPI said its research into the current automatic enrolment scheme showed that enrolees were unlikely to be saving sufficient to ensure a comfortable retirement.
The Daily Telegraph, p. 1
Also appeared in : City AM London, p.18

Housebuilding is up ‘but supply is still way behind’
Housebuilding is rising across the country as confidence returns to the property market, according to the latest survey by the Royal Institute of Chartered Surveyors (Rics).
The Independent, p. 53
Also appeared in : Independent i, p.39

‘Not Bank’s problem’
It should not be the Bank of England’s job to regulate house prices, Martin Taylor, a leading member of the Bank’s Financial Policy Committee has stated.
The Times, p. 37

Account holders unmoved by £750m switching service
A £750 million campaign to encourage more people to switch banks has got off to a slow start, with early figures suggesting that it had boosted customer defections by only 11 per cent. The bank-controlled body, The Payments Council, which is responsible for the new Current Account Switch Service, said that the pick-up in customer switching was “an encouraging start”.
The Times, p. 2
Also appeared in : Financial Times, p.2, The Guardian, p.28

Co-op bank’s ethical ethos may not survive new ownership
The Co-operative Bank was last night attempting to reassure its 4. 7 million customers that the ethical and mutual ethos of the bank will not be buried, despite losing control to a group of US hedge funds amid attempts to plug a £1.5bn hole in its finances. Chief executive Euan Sutherland said that the bank’s rescue had been achieved without a taxpayer bailout, although the restructuring has left customers with serious questions about its future direction and strategy.
The Guardian, p. 25
Also appeared in : Financial Times Companies and Markets, p.20, Independent i, p.41

PPI complaints still flood in after 1m cases
More than 1m complaints about payment protection insurance have been taken to the Financial Ombudsman Service, and it is still taking on up to 10,000 cases each week.
The Guardian, p. 28

Co-op to lose control of bank in hedge fund rescue deal
The Co-operative Group has scrapped its original restructuring plan to fill a £1.5bn black hole in the Co-operative Bank after it was rejected by creditors. It has now struck a deal with hedge funds that has saved its banking arm but that has cost the mutual control of its lender. Under the new agreement, the group will retain only a 30% stake in its subsidiary. The bulk of the Co-op Bank’s £1.3bn of subordinated debt holders will be swapped into bank shares, handing them 70% of business.
The Daily Telegraph Business, p. 1
Also appeared in : City AM London, p.3, Evening Standard London, p.39, Financial Times, p.1, Financial Times Companies and Markets, p.20, The Guardian, p.1-25, The Independent, p.48, The Times, p.1, Metro London, p.42, The Times, p.37

RBS hit by break-up and sub-prime penalty fears
Royal Bank of Scotland shares fell more than 5% yesterday on news that the Chancellor plans to break the lender into a “good bank” and a “bad bank” within weeks.
The Daily Telegraph Business, p. 4
Also appeared in : The Times, p.39

Bad loan standards set out
The European Banking Authority yesterday set out common standards for assessing troubled loans on bank balance sheets.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 19

New EU-wide rules for assessing bad bank loans
The European Banking Authority has issued standardised rules for assessing bad loans in an attempt to prevent national authorities using their own definitions, which undermined the last stress tests. The standards are expected to form the basis of the European Central Bank’s next asset quality review that is designed to identify banks that are still harbouring toxic loans and those that are still under-capitalised. The last two rounds of stress tests were criticised for being too lenient since national regulators were free to define what counted as a poor loan or forbearance. The EBA said its rules, which are still designed to leave the stress tests to national regulators, were “part of a continued effort to restore confidence in the EU banking sector”.
The Daily Telegraph Business, p. 4
The above articles appeared on 22/10/13 reproduced with the kind permission of Kantar Media UK. All rights reserved.

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