Arab Today, arab today britain backs retail bank ringfencing northern rock sale
Last Updated : GMT 20:51:15
Arab Today, arab today
Arab Today, arab today

Osborne announced a major overhaul

Britain backs retail bank ring-fencing, Northern Rock sale

Arab Today, arab today

Arab Today, arab today Britain backs retail bank ring-fencing, Northern Rock sale

Osborne backed the findings of the ICB for a "ring-fencing" of retail businesses
London - Arabstoday

Osborne backed the findings of the ICB for a \"ring-fencing\" of retail businesses Finance minister George Osborne announced a major overhaul of Britain\'s banks, approving a separation of their retail and investment businesses to help avoid another global financial crisis .
In a high-profile address to finance leaders in central London, Osborne also announced that Northern Rock would be privatised three years after it was nationalised to save it from collapse as the global financial crisis hit.
Osborne backed the findings of the government-appointed Independent Commission on Banking (ICB) which earlier this year called for a \"ring-fencing\" of retail businesses.
\"Today I have told the Commission that the government endorses both these proposals in principle... We will make these changes to banking to protect taxpayers in the future,\" he said.
Osborne said he had taken the decision bearing in mind what he said was a British dilemma.
\"As a global financial centre that generates hundreds of thousands of jobs, a successful banking and financial services industry is clearly in our national economic interests,\" he said.
\"But we cannot afford to let it pose a risk to the stability and prosperity of the nation\'s entire economy.\"
The practice of banks using money from their retail arms to fund investment operations has been widely blamed as a major factor behind the global banking crisis.
After months of speculation over Northern Rock, which was nationalised by the previous Labour government, Osborne said the coalition had to \"clear up the mess of the past\".
\"I can announce tonight that on behalf of you the British taxpayer, I have decided to put Northern Rock up for sale,\" he said, adding that they could \"at least get some of our money back.\"
He did not set a price but the BBC said the government planned to sell it to a single buyer for about £1.0 billion (1.14 billion euros, $1.62 billion), rather less than the £1.4 billion it cost to bail out the lender.
Potential buyers for Northern Rock could include Virgin Money, the Coventry and Yorkshire building societies, investment groups NBNK and Olivant, and Tesco Bank.
Northern Rock plunged into crisis in mid-September 2007 when its exposure to the US-triggered credit crunch forced it to seek emergency assistance from the Bank of England, sparking the first run on a British bank in recent history.
To avert financial meltdown, the government agreed in December 2007 to guarantee all customer deposits and then later nationalised the bank in February 2008 to prevent its collapse.
The lender was broken up into two parts last year, forming a so-called \"good bank\" that will be up for sale -- and a \"bad bank\" management company to run down the remaining toxic assets.
Banking shares fell heavily in Wednesday trade, with Barclays closing down 1.58 percent to 260.73 pence and Royal Bank of Scotland shedding 1.53 percent to 40.91 pence.
Bank of England chief Mervyn King, who spoke after Osborne, made a thinly veiled attack on banker pay packets.
The governor expressed sympathy for the \"millions of people, not here tonight, who are now bearing the costs of the financial crisis\".
He also warned that Britain\'s economy faced tough challenges.
\"Failure to tackle the imbalances during the seven years of plenty before 2007 threatens seven lean years thereafter,\" he cautioned.
\"Storms from the world economy are likely to stir up the waters through which the UK economy must pass as it too adjusts to a new equilibrium with lower levels of debt and a rebalancing from domestic to external demand.
\"We have to pass through turbulent waters. But we have set the right course,\" he added.
In an interim report published in April, the ICB also recommended that banks set aside more capital to avoid future state bailouts.
Cameron supported the report\'s findings but did not give a specific figure for future reserve levels, although it is expected to be higher than the international seven percent minimum.
The Commission is seeking to protect borrowers and savers in the event of another crisis. It will publish its final report on September 12 when it will outline how exactly the so-called banking \"firewall\" will work.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today britain backs retail bank ringfencing northern rock sale Arab Today, arab today britain backs retail bank ringfencing northern rock sale

 



Arab Today, arab today
Arab Today, arab today Fadi Kataya explains secrets of  Nancy Ajram's newlook
Arab Today, arab today Messi visit will contribute in tourism

GMT 14:04 2017 Friday ,24 February

Messi visit will contribute in tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Mental conflict endures

GMT 07:36 2017 Friday ,24 February

Mental conflict endures

GMT 11:26 2017 Wednesday ,22 February

Dutch corporate takeover defences tough to breach

GMT 11:14 2017 Wednesday ,22 February

Lloyds Banking Group posts surging profits

GMT 10:01 2017 Tuesday ,21 February

Egypt pound rebounds from flotation slide

GMT 09:57 2017 Tuesday ,21 February

Greece agrees to bailout reforms compromise

GMT 09:55 2017 Monday ,20 February

Thailand 2016 growth up but below junta target

GMT 09:29 2017 Monday ,20 February

Kraft Heinz withdraws bid for Unilever

GMT 09:22 2017 Monday ,20 February

China's huge debt poses big headache for central bank
View News in Arabic - Business: أخبار الأعمال
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Wafaa Amer is happy for Sherihan’s return

GMT 07:36 2017 Wednesday ,22 February

Wafaa Amer is happy for Sherihan’s return
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 05:19 2017 Tuesday ,21 February

Salma Rashid happy for 'A Whisper of Love'

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 07:51 2017 Wednesday ,22 February

Mom's immune system accepts babies

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday