Are the banks safe? A lot safer than they were. The state owns Bradford & Bingley and Northern Rock, partially owns the Royal Bank of Scotland and the soon-to-be-merged Lloyds TSB/HBOS group. They should be more confident about lending to each other. Will it be easier to get a mortgage now? it ought to be. The part-nationalised banks are committed to returning to 2007 levels of lending. New mortgages are at only 30 per cent of last year's levels, so something had to be done. We'll see big cuts in interest rates too. What will it mean for staff? It is hard to see the Government pushing for redundancies to cut costs. Some jobs may be lost anyway but in a slow, orderly fashion. What about the fat cats? No bonuses this year and future bonuses will be paid in shares. Packages for traders and top execs should be restructured to align them with the consequences of their actions.
Are the banks safe?
A lot safer than they were. The state owns Bradford & Bingley and Northern Rock, partially owns the Royal Bank of Scotland and the soon-to-be-merged Lloyds TSB/HBOS group. They should be more confident about lending to each other.
Will it be easier to get a mortgage now?
it ought to be. The part-nationalised banks are committed to returning to 2007 levels of lending. New mortgages are at only 30 per cent of last year's levels, so something had to be done. We'll see big cuts in interest rates too.
What will it mean for staff?
It is hard to see the Government pushing for redundancies to cut costs. Some jobs may be lost anyway but in a slow, orderly fashion.
What about the fat cats?
No bonuses this year and future bonuses will be paid in shares. Packages for traders and top execs should be restructured to align them with the consequences of their actions.
