View more on these topics

Cross-party support for Govt rescue package

The Conservatives and Liberal Democrats have given their support to Government measures to stabilise the banking system.

Speaking in Parliament this afternoon the Chancellor Alistair Darling outlined the Government’s three measures to restore financial stability, including the £50bn capital injection in exchange for stakes in banks, the increase in the special liquidity scheme to £200bn and the temporary guarantees on inter-bank loans.

Darling said it was important that taxpayers benefited from an “upside” to their huge investment in the banking system and that the commercial terms of the arrangements would enable taxpayers to be rewarded.

He said that in return for Government support banks would be expected to keep their executive remuneration, payments of dividends and lending practices in line with its expectations.

Conservative shadow chancellor George Osborne said his party offered its “constructive support for the package”.

But he said: “The real test will be if credit starts flowing again through the veins of the economy.”

He said it was important that families and small businesses benefit from the package by being able to access bank loans at reasonable interest rates and said it was important that no bonus was paid to the executives who took their banks “to the brink of bankruptcy”.

Liberal Democrat shadow chancellor Vince Cable also welcomed the Government’s measures but questioned how the Government would ensure there was “conditionality” attached to the support it offers banks.

He also said it was important that Government was not seen to be just bailing out banks when the effects of the financial crisis hit the real economy and urged the Government to ensure that banks returned the favour by making repossession truly an action of last resort.


Lehman chief berated over huge exec bonuses

The US House Oversight and Government Reform Committee has attacked Lehman Brothers chief executive Richard Fuld for authorising huge bonuses for departing exec-utives in the run-up to the bank’s collapse.

‘Multi-asset is the new diversifier’

Globalisation has accelerated market correlation but a multi-asset strategy can improve diversification and manage downside in a bear market, says Schroders head of IFA sales Steve Jackson.

Broker Talkback

Do you believe that personal accounts will launch on time despite current market turmoil?No 75%Yes 25%No “Hopefully not. It is a rubbish idea and with current conditions it will be even worse. “Andrew Martin, Key BenefitsYes “There may be some tweaking in terms of the mechanics of the investments but I can’t see them abandoning […]

Embrace simplicity!

By Fiona Holmes, proposition communications manager When I first took out critical illness cover, I was overwhelmed. It wasn’t just the form filling, it was finding out about the sheer number of illnesses I was covered for. Did it give me peace of mind that I was covered for neuromyelitis optica or systematic lupus erythematosus? […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm