Mortgage controls are critical, says Lord Turner


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Mortgage controls are critical, says Lord Turner

Mortgages & Residential Property

Mortgage controls are critical, says Lord Turner
Tough controls on mortgage and property lending are needed to build a sustainable economic framework in the developed world, according to Lord Turner of Eccinswell, the former chairman of the Financial Services Authority. In a speech to the Goethe University Frankfurt, Lord Turner also demanded tougher advertising standards for payday loan companies.
The Times, p. 40

Crisis delivered ‘permanent hit’, says think-tank
Findings by the Resolution Foundation in its annual State of Living Standards report show that squeeze on household finances since the financial crisis has been so severe that the number of mortgage borrowers with less than 5 per cent of their pay left at the end of the month has nearly doubled in the past seven years, despite cuts in interest rates to an historical low. Households have “taken a large and permanent hit to their living standards from an unprecedented squeeze”, the think-tank said.
The Times, p. 38
Also appeared in : The Times, p.36

Help to Buy plan adapted for Muslim borrowers
From today Muslim home buyers will be allowed to use Home Purchase Plans to access shariah compliant mortgages.
The Daily Telegraph Business, p. 3

Pensions & Life Assurance

The great pensions robbery hasn’t finished yet
Philip Johnston criticises Labour proposals for pensions that could see a reduction in the maximum tax-free sum that can be taken out at retirement.
The Daily Telegraph, p. 19

Retail Banking

Newspaper ‘leak’ fears force wary Barclays to publish profits early
Barclays yesterday rushed out its profits numbers a day ahead of schedule amidst fears that price-sensitive information had already been leaked, a suspicion aroused by the accuracy of a forecast in a newspaper. Barclays said that adjusted pre-tax profits had fallen by 26 per cent to £5.2 billion. This was £200 million shy of consensus forecasts, but the shares shook off the disappointing figure to close 1.2 per cent higher at 275p, perhaps relieved that there would be no big new shocks in the full details, published today.
The Times, p. 37
Also appeared in : Financial Times Companies and Markets, p.20, Financial Times Companies and Markets, p.20, The Daily Telegraph Business, p.1, The Guardian, p.20, The Independent, p.51, The Times, p.36

Round Up

Lambert sets out plans for bank standards league tables
A new banking standards board is set to create a league table of lenders’ ethical behaviour and staff qualifications, according to plans outlined by Sir Richard Lambert yesterday.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 4
Also appeared in : The Daily Telegraph Business, p.4, The Guardian, p.20

Ex-FSA chief calls for massive increase in banks’ capital reserves
In a speech in Frankfurt, Lord Turner, who chaired the Financial Services Authority until its abolition in 2013, called for banks to massively increase their capital reserves on the day plans for a new professional standards setting body were unveiled.
The Independent, p. 49

Bosses ‘told shareholder bank was in rude health’
A bankrupt ex-billionaire has told a Dublin court that the Anglo Irish Bank told him the bank was in “rude health” just before taxpayers were forced to bail it out.
The Guardian, p. 24
Also appeared in : Financial Times, p.6

Iceland sued by Britain for two thirds of its GDP
The British and Dutch authorities are suing Iceland’s depositor lifeboat fund – the Icelandic Depositors’ and Investors’ Guarantee Fund – for a sum equal to two thirds of the island nation’s GDP. The lawsuit reignites a six-year battle to force Icelandic entities to pick up the tab for money spent by British and Dutch authorities reimbursing depositors after the collapse of Icelandic bank, Landsbanki.
The Times, p. 35
Also appeared in : The Guardian, p.20, Financial Times, p.1

Mark Carney’s caught out by the ‘dismal science’
Governor of the Bank of England Mark Carney has admitted that his first foray into “forward guidance” regarding interest rates hasn’t exactly go according to plan.
The Independent, p. 53

UBS suspends bankers over hiring
Two bankers in Hong Kong have been suspended by UBS over concerns about the bank’s hiring practices and amid the fallout from a bribery investigation in the United States. The US bank is being investigated separately in the United States by federal authorities over allegations that it has been hiring the sons and daughters of senior Chinese government officials to win business.
The Times, p. 37

The above articles appeared on 11.02.2014. Reproduced with the kind permission of Kantar Media UK. All rights reserved.

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