Car Insurers Debate Over Future Profits

UK car insurers have been running an unprofitable business for 14 years. Independent market analysts, Datamonitor, say 2009 looks to be a profitable year despite the doubts

March 13, 2008

Budget Report Expectations

Chancellor Darling's Budget Report is expected to raise taxes on alcohol, fuel emissions, flights and many other issues concerning the economy. Tax burdens expected to increase on poorer families

March 12, 2008

Card Fraud Rises Again

Card fraud has increased over past year. Whilst chip and PIN technology has been successful in the UK, criminal activity overseas has increased 77 per cent

March 12, 2008

Tax Cuts Needed To Restore Confidence

Appeals for corporate tax cuts are submitted to the Treasury as it prepares its Budget report this Wednesday. Business and banking sectors are worried about the direction of the UK economy

March 10, 2008

First Time Buyers Take Hit From Stamp Duty

Stamp duty tax has not kept up with the rate of increase in house price inflation over the past decade. Yet another hurdle first-time buyers must leap over to get on the property ladder

March 10, 2008

Read all Finance News

Bank of England Will Not Save City Jobs

Hundreds of Citigroup's London investment banking team staff are let go as fears intensified as US announces they are officially in a recession. The Centre for Economics and Business Research (CEBR) expects 8,000 City job losses in 2008, a 20 percent increase on their forecast in October, according to Times.

Cuts are also expected in equity research, wealth management and consumer banking, in all, Citigroup expects to cut between 300 and 400 jobs. These jobs are focused in the fixed income departments which experienced a $10.9bn loss in the fourth quarter, attributing this loss to the credit crisis.

The Financial Times reports that Citi will reduce their labour force by 4200 worldwide. The job losses are blamed on the $9.8 billion fourth quarter loss the group reported last week.

However, the City bonuses will remain virtually unchanged for those employees who remain with the company.

A spokeswoman for Citigroup investment research said: "As part of the normal course of business, we must constantly review and make adjustments to our coverage and business that help align and maximize both our resources and opportunities for growth. At this time, we are discontinuing coverage on a limited number of stocks and, as a result, are making a limited number of staff reductions."

The Citigroup has also tightened their lending criteria for both mortgages and loans, worldwide. They told their brokers on Monday to stop lending mortgages to high-risk borrowers.

Citigroup was one of the major losers in last week's stock crisis. Their shares fell to their lowest level since 1998.

However, analysts want to reassure mortgage holders and investors that city group is still strong. They raised over ten-billion from investments, and credit card sales were up 37% in the last quarter of 2007.

Published on February 1, 2008

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Lending Falls Again Says CML

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10 Tips To Improve Your Credit

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Interest Rates Kept At 5.25%

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March 7, 2008

20 Per Cent Of Homeowners Fear Repayments

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March 6, 2008