UK enterprises due to be compensated by leading banks for swaps mis selling

Small to medium-sized businesses in the UK are due to be compensated after the Financial Services Authority estimated

What's in the bag? Business of Software 2010

that 90% of interest rate swap contracts were mis sold. The scandal has thrown up a number of similarities with the Payment Protection Insurance controversy, in which scores of British banking customers were duped into paying into PPI schemes when they didn’t want, need or ask for them.

It’s expected that the forthcoming reviews will shine light on a series of underhand tactics being used by the banks. Continue reading “UK enterprises due to be compensated by leading banks for swaps mis selling”

A Thought-out approach to spread betting

For those who believe in the random market theory; there will be no way of explaining how it is possible to consistently

G20 : CRAC BOUM UUUUH !!!

win with spread betting. This is because they believe that trading financial markets is akin to flipping a coin in terms of success or failure with each trade that we take. In other words it is gambling pure and simple.
What proponents of this theory fail to realise is that, although spread betting is governed under ‘gaming laws’ in the UK, those who manage to be consistently successful cannot be simply flipping a coin. These traders, of course, are not betting on the price of a stock, currency or commodity going up or down simply as the result of a wild guess, but have highly systematic and thought-out plans of how each trade will be successful. Continue reading “A Thought-out approach to spread betting”

Basel’s Diluted Liquidity Rule Compounds Capital Failure

This weekend banks got a big win from Basel, easing liquidity requirements more than expected. Banks surged after screen shot 2013-01-07 at 4.33.27 amunexpected win over the weekend.

How memories fade. Five years ago the UK had witnessed the first run on a bank – Northern Rock – since 1866 while the panic that followed a year later when Lehman Brothers collapsed led to £65bn of taxpayer money being poured into Royal Bank of Scotland, Lloyds and HBOS.

Indeed in 2010 Lord Turner, chairman of the Continue reading “Basel’s Diluted Liquidity Rule Compounds Capital Failure”

The Barclays Saga and Libor

A week before I did a story on the manipulation of the London Interbank Offered Rate   “LIBOR Manipulation : ny thing for you Big Boyz ”

As the blood flows from the proverbial carcass of Former Barclays chief executive Bob Diamond and political pressure claims the scalp of COO Jerry del Miser, the key focus up to what extent Barclays is culpable for the Libor saga and just how much markets should fear litigation and rolling heads at other head institutions.

I have tried to put in the understanding and the importance of LIBOR.

LIBOR has been called “the highway of finance” because it serves as the universal interbank benchmark interest rate used to price cash instruments in the real economy (deposits and loans) and short Continue reading “The Barclays Saga and Libor”