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Cash rules won’t stop wholesale market

Former Edeus chief executive Michael Bolton says a threefold increase in capital requirements for risky lenders will not deter banks from wholesale funding models in the future.

The Turner review says the FSA will demand more and higher-quality bank capital, with at least three times as much capital required to support “risky trading activity” in the wholesale markets. It hopes that by demanding so much of UK banks dealing in these markets, it will “simplify and derisk the securitised credit model”.

But Bolton says he is surprised that the FSA only wants three times more capital: “This will certainly not mean the end for wholesale lenders like Edeus or GMAC-RFC. Capital requirements were so low in the past, even three times the capital will still make it an attractive market.”

Bolton says at the moment the wholesale markets remain frozen so until this situation eases, the additional capital requirements will be largely irrelevant.


My claim change

Jeremy Noble, a mortgage packager and master agent for claim management company Credit Issues, explains how, with mortgages lending at record low levels, many mortgage brokers are looking at other areas to supplement their income. He recounts his experience of finding a new source of work as mortgage lending dried up

Aifa to launch online RDR academy

The Association of Independent Financial Advisers today announced plans for an online academy for IFA firms to help them meet the demands of the retail distribution review.


Five ways to make your employee focus group session a success

by Debra Corey, group reward director  You just planned and booked what you thought was the perfect vacation for you and your family. You call everyone together to share the great news and instead of receiving sounds of glee and delight, you receive groans and complaints.Your youngest says: “I hate beaches, didn’t you know that?” (You think to […]


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