Latest news with #bankingcrisis
Daily Mail
3 days ago
- Business
- Daily Mail
I had a ringside seat as arrogant men nearly destroyed a great British bank. That dramatic tale offers a dire warning today: RUTH SUNDERLAND
One Saturday just before Christmas 2007, there was a knock at the Edinburgh home of the late Alistair Darling, who was then Chancellor of the Exchequer in Gordon Brown's Labour Government. On the doorstep, proffering a gift-wrapped panettone, was Fred Goodwin, the boss of Royal Bank of Scotland (RBS), who lived nearby. This was no social call: Goodwin had come to beg for help to keep his bank afloat. His visit was Darling's first foreboding of the catastrophe that would engulf RBS a few months later, culminating in a £45 billion taxpayer bailout.
Yahoo
3 days ago
- Business
- Yahoo
Government sells final shares in NatWest 17 years after £45bn bailout
The UK has sold its final shares in NatWest Group, ending 17 years of state ownership since the £45bn taxpayer bailout that saved the bank from collapse at the height of the 2008 financial crisis. The full privatisation of NatWest is a symbolic moment for the banking group – formerly known as Royal Bank of Scotland (RBS) – and draws a line under the most tumultuous chapter in its near 300-year history. However, it comes at a £10bn loss to the taxpayer, with the state having only recouped about £35bn of its costs, because its shares have long languished below the average 502p level paid in the bailout. That compares with the £900m profit recouped from the sale of shares in Lloyds Banking Group, which was privatised in 2017, nine years after receiving £20.3bn in state aid for rescuing HBOS during the banking crash. The Treasury said that while it did not recover the entirely of the RBS bailout bill, 'the alternative would have been a collapse with far greater economic costs and social consequences', that could shater confidence in the UK's financial system and put savings and livelihoods at risk. Chancellor Rachel Reeves, said: 'Nearly two decades ago, the then-government stepped in to protect millions of savers and businesses from the consequences of the collapse of RBS.' 'That was the right decision then to secure the economy and NatWest's return to private ownership turns the page on a significant chapter in this country's history. We protected the economy in a time of crisis nearly 17 years ago, now we are focused on securing Britain's future in a new era of global change.' The government has now exited all of the banks it helped bail out during the financial crisis, the Treasury said. RBS became a symbol of the UK banking sector's implosion during the 2008 global financial crisis, with public ire focusing on its aggressive expansion under the former chief executive Fred 'The Shred' Goodwin. Goodwin was stripped of his knighthood in 2012, but is now estimated to be receiving a pension worth nearly £600,000 per year. In 2007 RBS led a consortium to buy the Dutch bank ABN Amro for £49bn – a huge sum at the top of the market. It was then the largest deal in financial services history, and for a short period made RBS the world's biggest bank. With £2.2tn in assets, it was more than double the size of the UK economy. Executives' excessive spending, which extended to private jets and a lavish £350m campus outside Edinburgh, also stretched the bank's finances just as the sector was facing a credit crunch. RBS was eventually forced to take a state bailout in October 2008, with the taxpayer eventually injecting £45bn into the lender, without which millions of customers' savings would have been put at risk. It left the government with an 84% stake in the banking group, leading to years of government austerity that many blame for hollowing out public services across the country. RBS, for its part, was forced to cancel bonuses and begin a long turnaround that involved slashing tens of thousands of jobs, shrinking its investment bank, and pulling out of almost 50 countries to become a UK-focused lender. It finally returned to profit in 2018, but ditched the toxic RBS name in 2020, rebranding the group – and its branches in England and Wales – as NatWest. The government started to recoup its costs through dividends paid out by the lender, and slowly sold its shares through a combination of sales to institutional investors and a drip-feeding of stock into the open market. NatWest also fast-tracked the process through multibillion-pound share buybacks. That process is now completed, bringing NatWest back into full private ownership nearly two decades after taxpayers saved it from the brink. NatWest chief executive, Paul Thwaite, said: 'This is a significant moment for NatWest Group, for all those who work here and for the UK more widely. As we turn the page on the financial crisis, we can look to the future with confidence, without forgetting the lessons of the past.' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Guardian
5 days ago
- Business
- The Guardian
Government sells final shares in NatWest 17 years after £45bn bailout
The UK has sold its final shares in NatWest Group, ending 17 years of state ownership since the £45bn taxpayer bailout that saved the bank from collapse at the height of the 2008 financial crisis. The full privatisation of NatWest is a symbolic moment for the banking group – formerly known as Royal Bank of Scotland (RBS) – and draws a line under the most tumultuous chapter in its near 300-year history. However, it comes at a £10bn loss to the taxpayer, with the state having only recouped about £35bn of its costs, because its shares have long languished below the 502p level paid in the bailout. That compares with the £900m profit recouped from the sale of shares in Lloyds Banking Group, which was privatised in 2017 nine years after receiving £20.3bn in state aid for rescuing HBOS during the banking crash. The Treasury said that while it did not recover the entirely of the RBS bailout bill, 'the alternative would have been a collapse with far greater economic costs and social consequences,' shattering confidence in the UK's financial system and putting savings and livelihoods at risk. Chancellor Rachel Reeves, said: 'Nearly two decades ago, the then-government stepped in to protect millions of savers and businesses from the consequences of the collapse of RBS.' 'That was the right decision then to secure the economy and NatWest's return to private ownership turns the page on a significant chapter in this country's history. We protected the economy in a time of crisis nearly seventeen years ago, now we are focused on securing Britain's future in a new era of global change.' The government has now exited all of the banks it helped bail out during the financial crisis, the Treasury said. RBS became a symbol of the UK banking sector's implosion during the 2008 global financial crisis, with public ire focusing on its aggressive expansion under the former chief executive Fred 'The Shred' Goodwin. Goodwin was later stripped of his knighthood in 2012, but is now estimated to be receiving a pension worth nearly £600,000 per year. In 2007 RBS led a consortium to buy the Dutch bank ABN Amro for £49bn – a huge sum at the top of the market. It was then the largest deal in financial services history, and for a short period made RBS the world's biggest bank. With £2.2tn in assets, it was more than double the size of the UK economy. Executives' excessive spending, which extended to private jets and a lavish £350m campus outside Edinburgh, also stretched the bank's finances just as the sector was facing a credit crunch. RBS was eventually forced to take a state bailout in October 2008, with the taxpayer eventually injecting £45bn into the lender, without which millions of customers' savings would have been put at risk. It left the government with an 84% stake in the banking group, leading to years of government austerity that many blame for hollowing out public services across the country. RBS, for its part, was forced to cancel bonuses and begin a long turnaround that involved slashing tens of thousands of jobs, shrinking its investment bank, and pulling out of almost 50 countries to become a UK-focused lender. It finally returned to profit in 2018, but ditched the toxic RBS name in 2020, rebranding the group – and its branches in England and Wales – as NatWest. The government started to recoup its costs through dividends paid out by the lender, and slowly sold its shares through a combination of sales to institutional investors and a drip-feeding of stock into the open market. NatWest also fast-tracked the process through multibillion-pound share buybacks. That process is now completed, bringing NatWest back into full private ownership nearly two decades after taxpayers saved it from the brink. NatWest chief executive, Paul Thwaite, said: 'This is a significant moment for NatWest Group, for all those who work here and for the UK more widely. As we turn the page on the financial crisis, we can look to the future with confidence, without forgetting the lessons of the past.'
The Sun
6 days ago
- Business
- The Sun
All the 102 bank branches shutting this month including Lloyds, Santander, NatWest and Halifax
DOZENS more branches are closing in June in a blow to customers who rely on in-person banking. Some of the biggest banks including Lloyds, NatWest, Santander and Halifax are axing sites over the coming days and weeks. 1 NatWest said in January it would close down 53 branches across this year. Santander then announced in March it would be closing more than a fifth of its high street branches. Halifax and Lloyds are both owned by Lloyds Banking Group which has the largest branch network in Britain. The group has announced 254 branches closures taking place over the next year. Here are the branches being lost this month: Lloyds Alcester June 25 Ashbourne June 24 Dorchester June 19 Launceston June 3 Liverpool June 4 New Milton June 13 Pembroke Dock June 26 Sheffield June 26 Southampton June 9 Southsea June 2 Spennymoor June 26 Stanley June 26 Tonypandy June 30 Warwick June 24 Welwyn Garden City June 11 Woodbridge June 25 Halifax Bitterne – June 9 Bournemouth – June 4 Felixstowe - June 2 Fleetwood - June 25 Gainsborough - June 2 Kingsbury - June 2 Horsforth - June 3 Launceston - June 3 Letchworth - June 3 Leek - June 4 Littlehampton - June 23 London (North West) – June 2 Mold - June 5 Welwyn Garden City - June 11 St Annes On Sea - June 12 NatWest Accrington - June 5 Alfreton - June 2 Beverley - June 25 Bridlington - June 11 Ellesmere Port - June 4 Garstang - June 26 Keighley - June 16 Leeds, Cross Gates - June 10 Leek - June 16 Manchester - June 11 Mansfield - June 26 Mexborough - June 3 Nantwich - June 19 Newark-on-Trent - June 17 Nottingham, West Bridgford - June 24 St Annes On Sea - June 24 Stafford - June 25 Stockport, Hazel Grove - June 19 Stockport, Heaton Moor - June 3 Stockton-on-Tees - June 4 Stoke-on-Trent, Longton - June 5 Uttoxeter - June 2 Washington - June 17 Worksop - June 18 Inside the hubs restoring high street banking and reversing the tide of mass branch closures Santander Aberdare - 24 June Arbroath - 17 June Blackwood - 23 June Brecon - 25 June Clacton - 16 June Colne - 14 June Croydon - 16 June Dungannon - 23 June Eltham - 23 June Fleet - 30 June Gateshead Metro - 16 June Glasgow LDHQ - 24 June Glasgow MX - 23 June Greenford - 24 June Kidderminster - 18 June Kilburn - 17 June Launceston - 16 June Louth - 17 June Magherafelt - 24 June Musselburgh - 30 June Peterhead - 16 June Portadown - 30 June Swadlincote - 30 June The closures comes as Nationwide Building Society claims its branches are thriving. The provider recently said almost 200,000 more customers used its branches in the financial year to the end of March, compared with the prior year, data from the group revealed. The provider has promised to keep all of its nearly 700 branches open until at least the start of 2028. Nationwide said more customers are coming through the doors over the past year as rival banks slash their high street network. Muir Mathieson, Nationwide's chief financial officer, recently said: 'The branches are thriving. 'We're seeing the number of people going into branches going up, and we think part of that increase is that there are fewer branches on the high street now that our competitors have closed theirs.' Customers want face-to-face contact particularly if they have concerns about fraud, or if they want reassurance about a specific process or account, Mr Mathieson added. He also indicated that people feel more comfortable handling bigger sums of money in a branch. About 5.7 million customers visited a branch at least once during the year. Nationwide's branch promise extended to Virgin Money after buying the bank for £2.8 billion last year. Banks closing branches say they are adapting to meet changing behaviours of their customers, who increasingly want to do banking on their phones or online. What to do if your local bank is set to close There are still a number of ways people can access basic banking services without having to venture to another town with a branch. You can use one of the Post Office's 11,684 branches to perform basic banking tasks — but not to open new bank accounts or take personal loans and mortgages. You can find your nearest Post Office branch by visiting Many banks also offer a mobile banking service - where they bring a bus to your area offering services you can usually get at a physical branch. Other banks use buildings such as village halls or libraries to offer mobile banking services. It's worth contacting your bank to see what mobile services they have available, and when they might next be in your area. New super ATMs are being rolled out across the UK where branch closures have left residents unable to access essential banking services. These ATMs will allow customers to withdraw funds, access their balance, change PIN numbers and deposit cash. What services do banking hubs offer? BANKING hubs offer a range of services to bridge the gap left by the closure of local branches. Operated by the Post Office, these hubs allow customers to perform routine transactions such as deposits, withdrawals, and balance enquiries. Each hub features private booths where customers can discuss more complex banking matters with staff from their respective banks. Staff from different banks are available on a rotational basis, ensuring that customers have access to a wide range of banking services throughout the week. Additionally, customers can receive advice and support on various financial products and services, including loans, mortgages, and savings accounts.
Irish Times
28-05-2025
- Business
- Irish Times
Like grief, banking inquiries have five stages and closure is never guaranteed
The Central Bank' s investigation into the collapse of the Irish Nationwide Building Society (INBS) – which concluded with publication of a report last week – followed a depressingly familiar pattern. First there was anger. Lots of anger. The collapse of the building society in 2010 led to a €5.4 billion bailout. It was a disproportionately large part of the €45.7 billion bill for bailing out the banking sector during the financial crisis. The debacle confirmed decades of suspicion that the building society was run as a personal fiefdom by chief executive Michael Fingleton . It led to more public outrage during a very angry time. Then came fear. Fear on the part of politicians – correctly as it turned out – that all of this anger would be vented on them come election time. After fear comes the third stage of Irish inquiries; activity masquerading as action. The Central Bank – then known as the Financial Regulator – began an investigation into the INBS's activities between 2004 and 2008. This confirmed what it already knew: that the building society's governance and risk management were a joke. READ MORE [ Fifteen years, €24.3m and 1,384 pages later, was the Irish Nationwide inquiry really worth it? Opens in new window ] This five-year investigation concluded that a wider investigation was needed to see if the INBS had broken the law and if its management was involved. This led to the setting up of the second inquiry in 2015, which delivered its findings last April and finally wrapped up last week. But before that, we had two more phases to go through. The next was apathy. A constitutional challenge by Fingleton and his lieutenant Stan Purcell effectively put the whole thing on hold for two years. It also took much of the heat out of the inquiry before it finally got going in 2017. It then sat for 105 days over the next four years amid waning public interest. The Central Bank reached settlements – involving sanctions and fines – with former chairman Michael Walsh and former executive Tom McMenamin in 2019. It settled with William Garfield McCollum in 2021. A permanent stay was put on inquiries into Fingleton on medical grounds, leaving only Purcell in the inquiry's sights. He was fined €130,000 and disqualified from being a director for four years. We finally arrived at stage five last week: resignation. The publication – 15 years after the event – of the final report on how a small and badly run building society played an outsized role in our national bankruptcy has been met with barely a shrug. It might seem overly cynical, but the five-stage Irish inquiry process would seem to serve the interests of everybody involved, except for those looking for a timely explanation of how something went seriously wrong and who is responsible. The delay suits politicians well enough – as long as the inquiry is set up promptly enough. A quick start, followed by years of hearings and legal challenges is just fine. They are pretty much in the clear once the inquiry is set up as commenting on the work of statutory inquiry – no matter how slow or badly run – breaks the convention that they can't interfere in the work of inquiries. And of course, they can take no remedial action until the inquiry is finished as that would prejudge the outcome. The attractions of the five-stage process for the subjects of an inquiry are equally obvious. The more time passes, the less the public care about the result when it comes. That makes it easier for all concerned to dismiss the findings as past tense and move on. The legal profession is happy to facilitate all of this, but the real enablers are us. We have bought into the notion that it is not possible to get answers to any serious institutional or regulatory failure in less than half a decade. The Central Bank, in fairness, appears alive to the unsatisfactory nature of the INBS inquiry. It published a market commentary along with the inquiry report that touched on this. There is a section devoted to the 'importance of the Central Bank's investigation and inquiry into INBS'. It leans heavily on the lessons the bank can take from the process, noting that: 'As the inquiry proceeded, the Central Bank continuously reflected on what it could do better; developing improvements to both its internal investigative and inquiry processes.' It concluded that 'this investigation and inquiry have had an enduring and positive effect on the Irish regulatory environment'. It sets out various measures put in place to ensure the smoother running of inquiries. The Central Bank was less effusive about how the 15-year €24.3 million process bolstered its authority as a regulator. 'The Central Bank's ability to bring inquiries to conclusion is critical to the effectiveness of its enforcement regime,' it commented, somewhat elliptically. It said it was important that 'individuals understand the Central Bank will use the full extent of its powers to pursue cases to their conclusion and to hold relevant individuals to account.' That is not exactly the message conveyed by yet another five-stage Irish inquiry.
