Government to break up the rescued banks

Heyman_2

'Three new High Street banking chains are to be created by the government by 2015 as part of a major overhaul.'
http://news.bbc.co.uk/1/hi/business/8336286.stm

Looks like the took Merv's advice then....

StiflersMom

This is good news all round. More competition in the marketplace should lead to more competitive mortgage products becoming available. This is really what we need to sustain the nascent recovery in house prices

mbga9pgf

This is good news all round. More competition in the marketplace should lead to more competitive mortgage products becoming available. This is really what we need to sustain the nascent recovery in house prices

Dumb. It will lead to less competition as residential mortgages will be funded from retail deposits and not RMBS. Means less money to go around especially with the introduction of Basel II.

Its not going to lead to more competition, its going to lead to far less money in the pot available for mortgages.

Kavanne

Waaah I don't wanna lose my job

chucky

mbga9pgf wrote: »

Dumb. It will lead to less competition as residential mortgages will be funded from retail deposits and not RMBS. Means less money to go around especially with the introduction of Basel II.

Its not going to lead to more competition, its going to lead to far less money in the pot available for mortgages.

currently it is quite profitable for a small number of loans being issued like Abbey's results the other day with most loans having at least a 3% mark up margin which seems to be a 100% return on capital for them.

as far a UK banks you are of course right - the unknown is foreign banks coming onto the UK mortgage market will they do what Abbey are doing? large margins off a small number of loans or small margin with lots of mortgages being issued.

kabayiri

Imagine selling to Tesco.

I could well imagine Tesco integrating it's retail and banking services within the same store.

Like Customs clearance, there will be 2 sets of checkouts. 'Green' for those who have enough cash in their account to pay for the groceries, and 'Red' for those who haven't!

mbga9pgf

chucky wrote: »

currently it is quite profitable for a small number of loans being issued like Abbey's results the other day with most loans having at least a 3% mark up margin which seems to be a 100% return on capital for them.

as far a UK banks you are of course right - the unknown is foreign banks coming onto the UK mortgage market will they do what Abbey are doing? large margins off a small number of loans or small margin with lots of mortgages being issued.

Why would foreigners buy into basket case UK banks with toxic waste on their books? The Quatari royal family dropped 600 million in barclays shares overnight a fortnight ago.

Only way they can make it profitable would be to hike margins. Significantly. They know rates have only one way to go and margins are going to have to reduce, not grow. Would you invest in an overleveraged, overvalued asset in a run-out country with poor future prospects? And if this is not the case, why did the government have to step in and not just rely on foreign capital when the market collapsed?

Wookster

StiflersMom wrote: »

This is good news all round. More competition in the marketplace should lead to more competitive mortgage products becoming available. This is really what we need to sustain the nascent recovery in house prices

What a stupid stupid thing to say.

Mortgages do not sustain the economy. Innovation and production do.

Cleaver

Careful everyone, there's a Cleaver Tesco rant coming up...

So, Tesco are in talks with the NHS about putting GP surgeries in their stores and I think we all know that by hook or by crook they will have a full high-street banking arm soon. Who needs an ID card scheme?

If you are a Tesco customer with your bank account and credit card, a club card for your shopping and you decide to register with the GP in the store (and why wouldn't you? I imagine you'd get clubcard points for visiting) then can you imagine how much Tesco would know about you? Every intricate detail about your health, wealth and every financial transaction you make. Scary stuff. I'm not a conspiracist, but I can imagine the above customer popping to Sainsbury's and mysteriously finding that their Tesco bank account isn't quite functioning properly...

Cleaver

Wookster wrote: »

What a stupid stupid thing to say.

Mortgages do not sustain the economy. Innovation and production do.

Wouldn't it be fair to say that no individual entity sustains the economy, it's a mix of a variety of things. And I could argue that some companies produce innovative mortgage products.

Wookster

Cleaver wrote: »

Careful everyone, there's a Cleaver Tesco rant coming up...

So, Tesco are in talks with the NHS about putting GP surgeries in their stores and I think we all know that by hook or by crook they will have a full high-street banking arm soon. Who needs an ID card scheme?

If you are a Tesco customer with your bank account and credit card, a club card for your shopping and you decide to register with the GP in the store (and why wouldn't you? I imagine you'd get clubcard points for visiting) then can you imagine how much Tesco would know about you? Every intricate detail about your health, wealth and every financial transaction you make. Scary stuff. I'm not a conspiracist, but I can imagine the above customer popping to Sainsbury's and mysteriously finding that their Tesco bank account isn't quite functioning properly...

Doctor/ patient confidentiality won't change. Any breaches of this will be severely punished with doctor's being struck off the register.