July 2012 Noteworthy News

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July 2012 Noteworthy News

Let’s start with what we Brits seem to like talking about instead of leaving it until the end as an …and finally…. the weather –   June was the wettest on record, ‘Nuff said!  Although water restrictions have been lifted, some farmers, such as apple growers in Sussex  might be counting the cost of their crops being dampened whilst some strawberry growers  claim its all come to good, others with PYO  are counting the cost and the damp conditions have driven bee colonies to struggle with near starvation.  Summer clothing sales  started early because of subdued sales but the sale of waterproofs is up.

 

The MPC (Monetary Policy Committee) meeting this month is anticipated to be bringing out QE  (quantitative easing) in response to latest economic indicators and at the recent FSA’s Annual Public Meeting  chairman Lord Turner described the Libor scandal `column inch filler‘,  as a huge blow to the reputation of the banking industry.

 

Banking activity is set to create an even huger blow over the next few weeks as the Libor scandal  unfolds with BoE Deputy Paul Tucker  being cited by one scuffed Diamond Bob, as involved in rate rigging actions. The current Banking scandal takes over from NatWest’s meltdown.  CEO Hester has agreed to forgo his £963,000 bonus this year because of the chaos following the computer glitch which has raised fears that customers may have had their credit ratings unwittingly blotted,  corporate hospitality at Wimbledon was scrapped and duplicate mortgage payments mistakenly taken from some customers have achieved an I’m sorry from RBS, as they promised no one would be left out of pocket…..  Interest rate swapping by RBS, Lloyds, Barclays and HSBC  as reviewed by the regulator had all four British banks on the naughty-chair and forced  to compensate their customers caught up in  the mis-selling of  complex derivatives; which were supposed to protect them if interest rates rose…..

 

A year down the line  from nationalised Northern Rock’s potential sale making its way into the news, sale done, it’s still hanging around the financial headlines as the CEO of the FSA claims he recommended Lloyds TSB be granted a loan from the BofE  to facilitate a takeover which could have changed the general climate, but, Governor Mervyn King he said …NO!..   Lloyds preferred bidder for their Verde sale remains to be The Co-Op , while Moodys’ is about to place a downgrade on Santander which would remove any parental support from Banco Santander.

 

London Borough, Southwark Council, is set to be the first UK local authority to impose a rent cap  for private landlords who accept housing benefit tenants – There are 30,000 private rental properties in Southwark, of which 5,340 currently accept LHA tenants.  Newham council’s plan, to become the first borough in the country to licence all private landlords,  has attracted criticism from the NLA (National Landlords Association). Due to come into force 1 January 2013, some 35,000 private tenancies will be affected. The NLA has said…..such drastic proposals will….only increase the burdens on those who already comply with the law, without having any bearing on those who blatantly ignore it. Private landlords will pay £150 for a five year licence if they register before 1 January, 2013, otherwise the full fee is £500. Landlords who fail to license face fines of up to £20,000. Shelter responded with `We urge other local councils to follow Newham’s lead in sending a clear signal that enforcing the law against rogue landlords is a priority’.

And Finally…. The Weather…. It’s still raining.  ‘Nuff said…. 

Image and Article credit: Copyright SUF 2012

 

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Step-Up Finance
About The Author - Mike has been doing this for twenty years; this current recession isn’t the first he’s worked through with businesses - His clients are mostly UK based. As well as fresh coffee, movies with good soundtracks, Sunday lunches – especially with his family – two wheels (and four) and using maps to get to the hidden gems of Norfolk, he takes great pride in building bridges for business owners and takes them across the gaps, to access finance and funding. He doesn’t `Do’ egos, irresponsibility or weak tea.

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