By admin on Thursday, April 10, 2008Filed Under: UK Banks
Despite continuous warnings of not breaking up for three years the newly nationalized bank, Northern Rock promised that it would repay the ?24bn state loan till the end of 2010. The bank has also added that after the pre tax loss of about ?167.6m in 2007, it would again be making huge losses in the current year. It was also revealed that the bank would be paying Adam Applegarth, the former chief executive an amount of about ?785,000 which is a part of the severance agreement.
On the other hand the shareholders have heavily criticized the various payout plans of the bank as it was already in various problems. In 2007 the bank was helped by the Bank of England as it was very close to solvency. According to the spokesmen’s of the bank, it ran into further depth of problems because of its efforts to avoid nationalization. These efforts which included payments to government and the professional advisors cost the bank something around ?50m.
On the other hand on its efforts to curb losses, the bank will be cutting down costs by about 20 percent along with a reduction of manpower to about a third of the existing one. There are also various small business plans on the way which would bring down the balance sheet of the company to about ?50bn from ?106bn of the previous year. The main reason for the collapse of the bank has been referred to the global credit crisis, led from the slow market in the US.
Popularity: 88%
By admin on Wednesday, April 9, 2008Filed Under: UK Banks
Despite continuous warnings of not breaking up for three years the newly nationalized bank, Northern Rock promised that it would repay the ?24bn state loan till the end of 2010. The bank has also added that after the pre tax loss of about ?167.6m in 2007, it would again be making huge losses in the current year. It was also revealed that the bank would be paying Adam Applegarth, the former chief executive an amount of about ?785,000 which is a part of the severance agreement.
On the other hand the shareholders have heavily criticized the various payout plans of the bank as it was already in various problems. In 2007 the bank was helped by the Bank of England as it was very close to solvency. According to the spokesmen’s of the bank, it ran into further depth of problems because of its efforts to avoid nationalization. These efforts which included payments to government and the professional advisors cost the bank something around ?50m.
On the other hand on its efforts to curb losses, the bank will be cutting down costs by about 20 percent along with a reduction of manpower to about a third of the existing one. There are also various small business plans on the way which would bring down the balance sheet of the company to about ?50bn from ?106bn of the previous year. The main reason for the collapse of the bank has been referred to the global credit crisis, led from the slow market in the US.
Popularity: 90%
By admin on Thursday, April 3, 2008Filed Under: Business, Featured
As per recent surveys it was found that more than half of the adult youngsters are living off their parent’s savings. About 55 per cent of parents had polled that they had shelled out approximately £12,610 to their children or grand children. This was obtained from a survey done by the Scottish widows.
It was found that four out of every ten children used the money to pay off their debts whereas one out three used it to get on the property ladder. From the YouGov poll, 5,783 adults suggested that there was a 16 per cent increase in the number of parents who lent money to their children from the 39 per cent in the previous year. More than half also stated that they were expected to hand over some more money in the future.
From the 36 per cent who were asked said that their intention was to use the money during their retirement. However 63 per cent of them say that they were happy to help out their children. With the ever increasing needs of people and the lethargy of children to start working, lending money from parents seems to be the easiest way out.
The mistake lies with the parents who don’t think twice in lending money to children at an age when they should be earning. The typical uses of money are endless. From paying off previous debts to housing loans youngsters don’t realize that now is the time for them to work and let their parents sit back and enjoy a retired life.
Popularity: 100%
