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Just Trawling Through Google, Found This

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Well, this is not good news coming out of the UK.

A plunge in the share price of the Royal Bank of Scotland prompted City and Westminster speculation tonight of imminent full-scale nationalisation for the bank as the financial markets issued a vote of no confidence in the government’s latest bail-out.

Amid growing concern from the government that the credit crunch is intensifying an already severe recession, Gordon Brown served notice that Labour’s patience with the banks was rapidly running out as the Treasury unveiled a second emergency package in three months.

Britain’s banks will be forced to sign binding contracts with the Treasury to take part in an insurance scheme to indemnify them from future losses, while in a U-turn on the position adopted since last February’s nationalisation, Northern Rock will be used to increase lending for home loans. Although the chancellor, Alistair Darling, said ministers had no desire to take banks into public ownership, the prime minister’s tough language did little to quell the belief that RBS will be the third UK bank to be nationalised since the financial crisis broke 18 months ago.

Brown said the public had a right to be angry as he condemned the “irresponsible losses” caused by the “wrong investments” at RBS, which today left the bank nursing the biggest loss – up to £28bn – in Britain’s corporate history.

He said today’s measures were not a blank cheque: “At every point, conditions are laid and the greatest condition of all is that in return for our support for the banking system they have an obligation to lend to small businesses and to families in this country. I will not sit idly by and let people and businesses go to the wall.” His tough language served only to worsen City sentiment. Bank shares finished dramatically lower, with RBS – almost 70% owned by the taxpayer after yesterday’s announcement – down by 65% and Lloyds HBOS suffering a 33% loss. Barclays, which lost a quarter of its value on Friday, fell a further 10%.

The implications here in Fairfield County are numerous. Start with the RBS building in Stamford. Oh quite the turnaround from the heady days of 2005.

The Royal Bank of Scotland is mulling proposals to build the world’s largest trading floor at a new $400m, 500,000 square foot office complex in Stamford, Connecticut.

The plan was disclosed by governor of Connecticut Jodi Rell, who says the state is prepared to contribute $100 million in tax credits to bring the operation to Stamford.

RBS says the plans, which would entail the merger of its corporate banking business in New York with its RBS Greenwich Capital subsidary and the relocation of its headquarters to Stamford, are awaiting board approval.

If the project gets the green light, around 550 staff would be transferred to the new facility from New York, along with 700 staff from RBS’s Greenwich office. About 600 new jobs would be generated through continuing growth of the bank.

In October of 2008, the problems with RBS were already apparent:

RBS remains committed to completing our building in Stamford and we look forward to having colleagues move in during the first half of 2009,” RBS spokesman Christopher Riley said.

RBS is building a 12-story RBS Americas complex for $500 million on 4 acres at 600 Washington Blvd. RBS expects to complete the building, which will house about 3,000 employees, including workers from RBS Greenwich Capital, in the first half of next year.

RBS, the second-largest United Kingdom bank before its shares collapsed, recently let go of Fred Goodwin, its chief executive officer, and ceded 60 percent of its ownership to the U.K. for $34 billion. Goodwin, who became RBS’s chief executive officer in 2000, spent almost $90 billion on takeovers, turning RBS into one of the world’s largest banks.

Wonder how the buildings coming along!!!

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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