View more on these topics

Moody’s set to downgrade British banks

Moody’s is on the brink of downgrading the credit rating of British banks such as HSBC, Barclays and the Royal Bank of Scotland by up to two notches.

Sky News reports that the move is expected as part of a broader credit downgrade of some of the world’s major banks including JP Morgan and is expected after the close of US markets at 10pm. Lloyds Banking Group may also be affected.

The move is a consequence of the ongoing Eurozone crisis and weak economic performance across the globe.

Moody’s recently downgraded Santander UK by one notch to A2 along with 16 Spanish banks as a result of the Spanish banking crisis and subsequent €100bn bailout.

Any downgrade will impact on the funding costs of major banks which have already been rising due to the Eurozone crisis despite low interest rates and falling Libor.

The government has proposed a funding for lending scheme involving the Bank of England providing cheap loans to banks so they will continue to lend to home buyers and small businesses.

The FT reports today that loans could be provided at a rate as low as 1.2%.

Recommended

Watchdog censures PMSL over flawed advice

The Financial Services Authority has publicly censured Principal Mortgage Services Limited, a Worcester-based mortgage broker, for failing to give suitable advice on interest-only mortgages. It has also banned the director, Terence Harrop, from working in regulated financial services. PMSL recommended customers take out an interest-only mortgage with an accelerator product called the Flexible Repayment Plan. […]

10

FSA reveals its latest executive pay and bonuses

Financial Conduct Authority chief executive designate Martin Wheatley has already been paid over £50,000 in performance related bonuses, after joining the FSA last September.

Pic of Naomi Heaton
1

London’s safe-haven stock will run dry

The eurozone crisis has sparked an influx of Europeans investing in prime central London residential property, according to recent press comments. Greeks and Italians are hedging against the euro and economic collapse, while France’s newly elected president Francois Hollande’s taxes are sending the French fleeing to South Kensington.

Newsletter

News and expert analysis straight to your inbox

Sign up
Comments
  • Post a comment
  • vkmo 22nd June 2012 at 7:52 pm

    My Fair Lady lyrics: “The rain in Spain stays mainly in the plain” = “The drain in sPAIN makes my investments go on wane”