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Articles on Banking

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I say, look at the size of this larder. Oli Scarff/PA

Help to Buy is a problem for UK banks, by default

Mortgage rates for the government’s Help to Buy scheme were announced yesterday amid the usual torrent of criticism for a policy that has very few friends. One Daily Telegraph commentator deemed the policy…
Coles is believed to have applied for an Authorised Deposit-taking Institution licence, which would allow it to take deposits. AAP

Mortgage price check in aisle four as Coles banks on future

The news that Coles may be seeking a banking licence would, if confirmed, put the supermarket group and its parent company Wesfarmers in direct competition with Australia’s major banks. It would allow…
A banking crash killed the Wall St bull market. Robin Stevens

Banking’s future depends on learning lessons from the past

A bank in trouble negotiates with its regulatory authorities and other banks for support, but is refused a bail out and closes abruptly, sparking a global contraction as its obligations are left unhonoured…
Janet Yellen: leader or follower? IMF

It doesn’t really matter who chairs the Federal Reserve

The surprising news that Larry Summers has withdrawn his bid to become the next chair of the US Federal Reserve has opened up the big question of who should lead America’s central bank. The new front runner…
Parliament in the early 1800s: good at resolving banking crises.

Response to past crises shames post-Lehman dithering

The fifth anniversary of Lehman Brothers’ demise is an opportune moment to take stock and contextualise what has happened since. And one good way to do so is to compare this government’s policy response…
Investment bank for sale, no careful owners. John Stillwell/PA

Banking’s Lehman lesson is that change must be cultural

This weekend will see the 5th anniversary of the collapse of Lehman Brothers, an event that tipped the world into economic crisis and shoved banking into the spotlight. The critical state of the world’s…
Taking banking back to its foundations. orangeacid

Reborn TSB evokes memories of another banking era

After an absence of 18 years, TSB banks reappeared on the British high street this week. Though much of the initial commentary focused on the new bank’s opening day website crash, a more interesting question…
Sailing through troubled waters. Chris Ison/PA

‘Window dressing’ will not restore JPMorgan’s image

Another week, another banking scandal. In the past few years we have seen what appears to be an endless line-up of banks behaving badly. They have engaged in rate manipulation, rogue trading, product mis-selling…
That’s one expensive cetacean. wwfunitedkingdom

A whale of a time: how traders cost JP Morgan billions

As long as there have been financial markets, there have been serious financial losses. But the traders of today have shown a talent for blowing billions. During the most recent round of financial misadventures…
Goodbye Wonga, hello credit co-ops? Catholic Church (England and Wales)

Welby’s Wonga wobble as he takes on the financial sector

The Archbishop of Canterbury, Justin Welby, has become increasingly involved in debates about the UK financial sector. The embarrassing revelations that the Church has invested indirectly in payday lender…
The market power of banks in funding will be challenged by the rise of super funds. Image from www.shutterstock.com

Rise of super funds will shape Australia’s financial sector

How will the shape of Australia’s financial sector evolve over the coming decades? How will the demand for finance change? Where will the supply of funds come from? Can we be confident that available funds…
Taking on water is the last thing a sinking vessel needs. amirjina

Bail ins are the new bail outs, but they won’t save banking

Bailing out banks is so 2008. It seems 2013 is the year of the bank “bail in”. It started with the Co-operative Bank in the UK, when the bank’s management decided to “bail in” some of its bond holders…
Tough times in the zone: the euro is holding out for a hero. Rock Cohen/Flickr

The European banking union as a matter of equality

Academics, politicians, international economists and central bankers alike talk and talk about the theoretical benefits of a European banking union. But these reflections go far beyond the current, real…
Welcome to London. Now would you mind fixing the economy? Alastair Grant/PA Wire

Here’s Carney: what to expect of Canada’s superstar banker

Like many Canadians to achieve high office in his country over the past half-century, Mark Carney came from an ordinary, middle-class background. And like his two immediate predecessors as governor of…
Bankers forgot how to be clever. Scott Ableman

Banking report suggests a cure for stupidity epidemic

For a brief period of time in the 1980s, one of the biggest selling t-shirts carried a print of an arrow which simply said “I’m with stupid”. It pointed to the person next to the witty wearer. In the 1990s…
Once feted as ‘conquistadors’, Spain’s banks now have problems closer to home. marciofleury

Spanish banks on the verge of a nervous breakdown

As in the movie that led Pedro Almodóvar to become an internationally famous film director in the late 1980s, Spanish banks have been “on the verge of a nervous breakdown” during the 4 last years, facing…
Troubled bank is co-operating with the authorities. Rui Vieira/PA

What went wrong for the Co-op Bank?

Collapsing business deals, massive financial losses, and a “junk” rating have made recent months a nightmare for the Co-op Bank. In March it announced losses of £634m for the 2012 financial year, largely…
RBS: Not as valuable as it used to be. David Cheskin/PA

RBS sale: bad for taxpayers, bad for banking

The UK could be about to make a multi-billion pound mistake. Plans to sell-off the 82% share of the Royal Bank of Scotland (RBS) and the 39% share of Lloyds owned by the taxpayer are gaining favour in…

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