View more on these topics

Lloyds a race-winning tortoise

Conservative shadow chief secretary to the Treasury Philip Hammond has urged banks to learn from Lloyds TSB – a race-winning “tortoise” compared with the failed hares of the banking sector.

Speaking at a fringe meeting, Hammond said that Lloyds TSB was an example to the rest of the banking sector despite being ridiculed in the past for modest growth plans.

He said: “For years, Lloyds Bank was pilloried for its lack of league performance. People were asking why it wasn’t getting involved in all this go-go banking that was generating all those fantastic profits. What was the matter with it?

“Well, it was the story of the hare and the tortoise – Lloyds with its conservative practices and its conservative balance sheet crawled up the inside lane and snapped up all the hares as they collapsed just before the finishing line.

“I think that is a very important lesson that will bring comfort to those that favour a more conservative style of investment and one that if people remember will help to rein back the excesses next time.”

Recommended

Crunch time for small funds?

Nearly 500 UK retail funds are running with less than £10m in assets, research from Money Marketing has found. The survey, in conjunction with Financial Express, raises questions over how profitable it is for fund firms at a time when the credit crunch is pushing profit margins to the limit.

Safety thirst

At the end of one of the most tumultuous weeks we have experienced in financial markets, the Financial Times’ Lex column stated on Friday September 19 that investors today are “more concerned about a return of capital than a return on capital”.

Trouble brewing over TCF

Industry experts says it is time to scrap big T and little T and establish a single definition of tele-underwriting to comply with treating customers fairly.

Life cover for life

Jennifer Gilchrist Proposition Lead – Design, Royal London When someone mentions whole of life plans, most people will think of a niche product that serves as an inheritance tax planning tool for high-net-worth clients. And it’s really not surprising they’ve been pigeonholed in that way because before the arrival of RDR in 2013, that’s more […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment