Politicians powerless to stop barmy bankers’ bonuses
October 29, 2009
Political manoeuvring it may be; but Shadow Chancellor, George Osborne has fired his opening election salvo directly at the ship of fools that is the UK banking industry. He’s stated that his party, The Conservatives, would stop bankers from paying themselves large cash bonuses this year.
Hang on a sec George, this sounds very familiar to another statement recently made collectively by the G20 nations after their last get-together. They announced that in future, a significant proportion of bankers’ bonuses would be paid in shares and spread over a three-year period. What’s more, if we analyse The Shadow Chancellor’s suggestions further, you’ll notice the words “this year”. There won’t be a general election until 2010 – so Mr Osborne’s words are starting to sound like electioneering rhetoric. What he certainly hasn’t done is pledged to ban bankers’ cash bonuses if his party is elected into power next year.
Empty threats made by politicians looking to curry favour with the electorate; it’s hardly going to get bankers quaking in their Gucci shoes is it? The fact of the matter is that most investment bankers who are in line for million-pound bonuses, will get them this year. However one group in particular, will be under intense pressure not to accept these bonuses: those working for banks part-owned by the government. Yep, the ones we the taxpayers bailed out in 2008 such as RBS and Northern Rock.
Bankers worship at the altar of money. The only people they truly listen to are those who hold the purse strings: the shareholders. They will act only in accordance with their shareholders’ almost divine will. Shareholder-power is the key to getting bankers to reign-in the irresponsible practices that have upset the country’s financial stability and sensibilities.
We, the taxpayers, are major shareholders in companies such as RBS – so we, or at least those who represent us, have the clout to stop these banks from paying massive bonuses. The Conservative Party, unless they’re massive shareholders in banks that haven’t needed a government bailout, have even less power than the G20 to prevent bankers paying themselves huge bonuses. It will remain this way until bankers stop believing it’s better to use company profits to line their pockets than to restart the flow of credit to individuals and small businesses.
The bonus culture is so strong within the UK banking fraternity that caps in bonus size will only come about via two ways. Firstly, via shareholder power; and secondly, if the government of the day can persuade the banking industry that bonus caps will not put the UK at a competitive disadvantage when it comes to attracting the best talent.
Now a policy that restricts the reward and recognition of talent is about offensive to Tory ideology as it gets. Mr Osborne your bark is worse than your bite.
So where does this leave the average borrower? Still without access to credit that’s where. Traditional routes to borrowing may have been cut off, but new and reputable ways such as pay day loans are becoming more and more popular. They offer APRs competitive with some credit cards and you don’t need a credit check to get one. Learn more
Sneaky and unfair credit card companies’ practices to be stopped
October 27, 2009
The government has announced proposals, which if become law, will prevent card firms from raising interest rates and spending limits without the account holder’s consent.
Specific proposals being considered by the Department for Business Innovation and Skills include:
- Insisting that repayments go towards reducing the most expensive debt such as cash advances first
- Increasing the minimum amount a holder must pay off their card each month to speed up the rate they lower their debt
- Banning credit card companies from raising customers’ spending limits without their prior consent
- Restricting or banning interest rate increases on debts already incurred
Response to the government’s announcement has been mixed so far. Predictably, the credit card industry has gone straight on the defensive. Whilst happy to study the proposals, the UK Card Association commented:
“We need to be able to demonstrate what impact these would have on consumer choice and the costs to customers of using credit cards.
“These proposals risk disadvantaging more customers than they protect.”
Singing a very different tune; the consumer organisations are simply cock-a-hoop with the government’s challenge to the credit card companies. Leading the praise is The Citizen’s Advice Bureaux commenting:
“We see far too many people on low incomes that have drifted into very high levels of borrowing as a result of unsolicited increased access to credit.”
Now, we’ve thought that credit card companies have had it their own way for far too long. No other type of lender has free-reign to impose baffling terms and conditions and increase interest rates without explanation. However, let’s look at this objectively. What will the government proposals mean for those who seem to have suffered most from the finance industry’s failure to regulate themselves: the customers?
If you’ve got a credit card and keep your spending well within agreed limits, you’ll be better protected under the proposals. If you run your credit card consistently close to its spending limit and make the minimum repayment each month, you’ll also be better protected and more likely to become debt-free faster. However, if you’re looking to significantly increase your credit limit, you could be in for a nasty shock.
On the one hand, you have the government twisting the arms of the banks to make them start lending again. On the other, you have the government introducing regulations that makes it harder for people to borrow. Ironic – yes; helpful – no. These mixed messages not only hurt borrower-confidence, they also further restrict consumer access to credit. So, it seems there is some truth in the UK Card Association’s prediction that the government proposals may “disadvantage more people than it protects.”
The need for credit hasn’t gone away – and more and more people will seek it from non-traditional sources such as payday loans. These are reputable loans of £80 - £750 that you repay the next day you get paid. There are no awkward questions or bad credit checks. And unlike the credit card companies, there are no unfair practices such as increasing your interest rate without you knowing!
This leaves the credit card companies facing some very difficult decisions. Clichés such as: ‘you reap what you sow’ and ‘they’ve made their own bed, so they can lie in it, spring to mind’. However on a more reflective note, if the companies cannot change their unfair practices on their own, they will face regulation. And in the meantime, more people seeking credit will discover a simple way to get it: the payday loan.
Rangers FC not off for an early bath after all
October 26, 2009
Reports that Glasgow Rangers Football Club has been threatened with administration by Lloyds Group have been played down by the bank.
Manager Walter Smith stated during a press conference at the weekend that:
“The club was being effectively run by our bank whilst we seek a new owner.”
However, Lloyds has hit back saying that they don’t own or operate the club and that they haven’t threatened the club with administration. Who to believe? We know Rangers are £25million in debt. We know that they’re going to have sell players to survive. We also know that the Banks - and in particular Lloyds are in big trouble. Since buying Halifax Bank of Scotland in 2008, their profits have slumped. The knock-on effect from this has been most severely felt by their customers. Individuals and businesses have had their access to credit severely curtailed. And it appears the historic football club isn’t immune from the credit crunch either.
Okay, so footballers and those who work within the game aren’t famous for their frugal lifestyle. It’s a big money business and clubs take ridiculous financial risks to improve their fortunes on and off the pitch. Banks aren’t into ‘big risks’ anymore. Not since their own greed game got them their fingers burnt and knuckles severely rapped by the FSA.
So where does this leave the beautiful game in one half of Glasgow? Well, Lloyds say they’re still very supportive of the club and want it to operate under a sustainable business plan. That means no more transfers and maybe a few Bentleys will have to go back too! That’s until a new buyer is bought. Step forward the latest Saudi zillionaire.
It’s hardly a story of destitution for the club. But what about the fans? Similar to everything else in this financial crisis, it’ll be everyday people who’ll suffer the most. Those who pick up fat salaries for failure will continue to do so - and it’ll be the everyday supporter who pays for it all.
If you’re struggling to pay for your footy ticket for this weekend, take a look at a payday loan. If you’ve got a full-time job, you can borrow £80 - £750. It can be in your account today and you repay it the next day you get paid.
Just when you think it’s over; another finance firm goes under
Another day of the credit crunch and another investment bank bites the dust. This time it’s ARC Capital and Income: a London-based structure financial products firm. They had about 10,000 investors, most of whose policies were backed by big banks such as RBS, Barclays, Lloyds, Morgan Stanley and JP Morgan. Similar to many other firms selling highly complex products, they’ve been caught up in the Lehman Brothers scandal.
The Financial Services Authority (FSA) has been reviewing the UK structured products market in the light of the Lehman collapse in September 2008. A FSA spokesperson commented:
“The marketing and distribution of these products, along with the wider structured products market, have been subject to an FSA review.”
Translated; this means ARC were brought down by their decision to sell high risk, high return products. A decision no doubt driven by the promise of big bonuses; and one taken without any regard to the knock-on effect failure may have upon the ordinary high street borrower.
Prime Minister Gordon Brown boldly predicted in last weekend’s Sunday papers that the UK would be out of recession come the New Year. The news that another investment bank has just gone bust hardly indicates we’re about to turn a corner. Far from it; the fact is the country’s in its longest and deepest recession ever. Many high street banks aren’t lending and many more face mis-selling claims and complaints.
So where does this leave ordinary people looking to borrow cash in the UK? Well, if you’ve got a perfect credit history, you may be lucky and get considered by your bank for a loan. If they turn you down, try turning to a paydayloan. There’s no credit check and you can borrow £80 - £750 today. All you need to apply is to be in full-time employment and the money can be in your account in hours. You then repay it in full the next day you get paid. Simple.
Credit is still available to the masses; it’s just a case of knowing where to look for it.
Tougher scrutiny for secured loans and mortgages
October 22, 2009
First it was the banks that switched off the flow of credit and loans to a huge proportion of the UK population. Then not to be outdone, the government’s regulatory body, The Financial Services Authority (FSA), has proposed new rules that will further restrict people’s access to secured loans and mortgages.
So the banks and other lenders’ failure to regulate themselves is something normal people must pay for, not once – but twice. That’s right; we’ve already sacrificed tax £s to fund the nationalisation of banks about to go bust. And now we must sacrifice our access to sub-prime borrowing too.
Of the 10,000 types of mortgages available during the housing boom, around 3000 of these were self-certificated. The new regulations, if successfully introduced, will stop self-certification forever. Instead, the onus will be on the bank or lender to look at your personal finances to ascertain how much money you can afford to borrow. And if you’re self-employed, lenders will be able to look at your tax returns to see how much disposable income you have available each month. Whether you work for yourself or someone else; if you apply for a loan, you’ll have to provide evidence such as bank statements or payslips to prove you can make the repayments.
Specifically, the FSA’s new legislative plans to protect the consumer include:
• Making lenders responsible for assessing a borrowers’ ability to repay a secured loan or mortgage
• A ban on giving loans to people with a poor credit history
• Stopping charges for borrowers who’ve got behind on their repayments but have negotiated and stuck to an arrangement to repay these arrears
Now, if you see the irony in politicians pressurising banks to start lending again, whilst at the same time restricting lenders access to over 30% of mortgage types, you’re not alone. Those who already have sub-prime mortgages have more to worry about than most: they may never be able to get a secured loan again. In fact, thousands of people who could get mortgages and secured loans during the housing boom may now not be able to under the new FSA rules.
To make matters even worse, the FSA intends their proposals to be enshrined in law by 30th January 2010. So, if you want to self-certificate or protect your personal finances from outside scrutiny, you better get you loan fast! But what happens if you need the loan after 30th January? What then? The answer could be a payday loan. To borrow between £80 and £750 and repay it the next day you get paid; all you have to do is prove you’re in full-time employment. Take a closer look
McLaren Unveils New Sports Car
September 9, 2009
Today McLaren have revealed the first of three cars that are to make sure McLaren are put back on the map. The supercar is expected to cost about £150,000 and will compete with the Aston Martin DB9, the Ferrari 458 Italia and the Lamborghini Gallardo. The car is cutting edge in design and specifications and can accelerate 0-60 in less than 4 seconds.
They have named it the MP4-12C supposedly after McLarens Formula One roots. The car will undoubtedly be popular with the Simon Cowells of this world but won’t be on sale until 2011. McLaren hope to be producing 4,000 of the supercars per year by 2014.
The decision for McLaren to manufacture road cars is thought to have something to do with the possibility of F1 budgets being cut. This strategy might allow for fewer jobs to be cut in the long run.
The car itself has supposedly been designed with function in mind over style with plenty supercar luxuries and gadgets alongside its 3.8 litre twin turbo V8 engine. While many people undoubtedly will want this car the price tag will make sure it is still a rare buy.
If you need a short term loan to help you buy a new car this month (perhaps not this one) then apply here with no credit checks required!
The Death of Big Brother
September 7, 2009
This Friday was the imminent ending of Big Brother 10. Supposedly there was such a sharp decline in viewings Channel 4 brought forward the finale by two weeks. The five remaining housemates were all evicted from the house this Friday and glamour model Sophie was crowned the winner.
Channel 4 have agreed to just one more year of the show before it will be axed or sold on. But viewer ratings are likely to be even poorer than this year. Viewings were down by about 5 million – a greater fall than was ever predicted. This was probably due to the disinterest of the media this year with barely any tabloids featuring BB headlines.
It will be a shock for this years contestants to lean they have not become household names. Did Big Brother get its winning choice of personalities wrong this year? Or is it simply due to the fact that after dominating our TV sets every summer for ten years the British public have simply had enough?
Winner, Sophie, announced she will be spending her prize money on clothes for Chihuahuas.
If you need extra cash for Chihuahua outfits before the end of the month then get a payday loan easily with no credit checks or questions asked!
Long-term Debt Falls
September 3, 2009
Consumer debt has fallen for the first time since 1993 and £600 million of debt has been paid off. It is thought people are trying to repay mortgages and credit cards and are eager to reduce their long term debt.
The nation’s “live now, pay later” mentality would seem to have finally come to a halt as credit card lending fell to just £92 million. This is the lowest lending figure since last December.
However, mortgage approvals are up for the 6th month in a row. Meaning there are still plenty of people needing to borrow despite the recession. 50,123 mortgage applications were made in July and the figure is expected to continue to rise.
Same day payday loans are a short term solution to borrowing money. These unsecured loans are easy to obtain and just cover you until the end of the month. With an uncertain future people are worried about tying themselves down to long term debt and this is the perfect short term solution.
Fuel Prices Rise Again
September 1, 2009
Last night at midnight petrol prices rose by 2p a litre. Including VAT this will actually be a rise of 2.3p. This is the third time in 9 months that they have crept up. Apparently the rise was triggered by the increasing costs of crude oil.
Many are outraged claiming this will hit the people who are struggling the most in the recession the hardest.
The average price of petrol is now back above £1 for the first time since last February. It seems the government are still treating cars as a luxury when in truth, for millions they are an essential.
Morrisons have refused to put prices up absorbing the tax elsewhere but unfortunately Tesco, Asda and Sainsburys have not followed suit.
If fuel prices are effecting you and you need a little extra cash until payday then getting an unsecured payday loan is a good option. Especially as there are no credit checks required!
Festival Fever!
August 28, 2009
With the festival season well and truly underway the biggest weekend yet looms ahead. Reading, Leeds, Creamfields and Notting Hill Carnival make it all about this bank holiday weekend. Record ticket sales mean millions will be packing up tents and venturing to a field to drink beer and listen to live music.
Reading and Leeds have already begun with 150,000 fans due to attend this weekend. Kings of Leon, Arctic Monkeys and Radiohead are just a few of the massive names to be performing over the three days.
Across the country, massive dance acts like Tiesto and Calvin Harris will be gracing Creamfields this year as it sells out for the first time ever! Milly, a student from Liverpool tells us this is her first year going to a festival and “anyone who is anyone will be there”.
Tents and sleeping bags are flying off the shelves this week and if you want to be part of the action get down to a field playing live music this weekend! It’s a bank holiday absolute MUST for “anyone who’s anyone!”
If you need to get a loan for your bank holiday festivities then it is easy and quick with no credit checks required at Get me To Payday
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