Interest rate rises could be sooner and higher


rising sooner and higher

The Bank Of England has warned that interest rate rises could come sooner and be higher than expected.

For the time being the Monetary Policy Committee (MPC) has agreed to leave the rate unchanged at 0.5%, but said that rates would need to rise ‘earlier’ and by a ‘somewhat greater extent’ than they thought at their last review in November.Read More


Interest rates rise for first time in a decade

Interest rates rise for first time in a decade

The Bank Of England has raised interest rates for the first time in a decade and governor Mark Carney has said the banks should pass the rate rise on to savers.

Base rate has been at a record low since August 2008 when it was slashed from 5.25% to the then record low of 0.5% as an emergency measure to stimulate the economy in the aftermath of the financial crisis.Read More


Bank Of England sets new rules designed to end bank bailouts

Bank Of England Purple Book

The Bank Of England has laid out strict new guidelines for the UK banking industry to deal with the consequences of any future financial crisis, avoiding the need for public funds to bail them out.

The Bank’s Purple Book outlines clearly what will happen if the 2008 financial crisis repeats itself and banks are in danger of collapsing.Read More


The Great Escape: Co-op Bank signs £700m rescue package

Co-op sign rescue deal

The Co-op Bank has signed a £700 million rescue package to prevent it being wound up under Bank Of England regulations.

The Manchester based bank has signed a deal with its existing investors who have agreed to swap their debt for a stake in the bank.Read More


Co-op Bank no longer up for sale

Co-op Bank no longer up for sale

The Co-operative Bank is no longer up for sale with a rescue plan on the horizon.

The bank had put itself up for sale in February after it was unable to meet capital requirements for Bank Of England regulations.Read More


Co-op plans debt for equity scheme to avoid wind-down

Co-op plans debt for equity scheme to avoid wind-down

The Co-operative Bank wants to strike a deal within two weeks to shore up its operation by raising £450 million to cover senior bonds due to mature in September.

Insiders have revealed the plan in which some of the bank’s existing investors will be asked to swap their bonds for shares at a loss.Read More


Virgin pull out of Co-op Bank sale

Virgin pull out of Co-op Bank sale

Virgin Money has become the latest potential buyer to pull out of the Co-operative Bank sale.

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Co-op Bank takeover still on

Co-op Bank takeover still on

Takeover talks are continuing for the troubled Co-operative Bank and a number of new bidders have entered the auction process.

The sale was thrown into doubt last week when the Co-operative Group slashed the value of its 20% holding in the Manchester based lender to zero.Read More



Hope fading for Co-op Bank survival

Hope fading for Co-op Bank survival

The Co-operative Bank has been placed under ‘intensive supervision’ by the Bank Of England as its survival options appear to dwindle.

BBC Business editor Simon Jack said: “The BBC understands contingency plans to ensure the ‘orderly failure’ of the 150 year old bank are well advanced.Read More