ING Pulls Out
I heard this story from a friend, who used to broke deals for the Dutch bank.
The effect is summed up in this paragraph from the article.
Last year, the leasing business provided £22bn to help keep British industry running – many of the deals being done direct between banks and large companies. On that measure, ING Lease accounted for 5% of the market.
However, it specialised in the smaller end of the business – farms and young firms that got in touch via specialist brokers.
It is these customers, wanting essentials such as tractor attachments, computers, desks and commercial vehicles, which will bear the brunt of the loss.
It left lots of my friend’s clients without finance, as he deals very much at the smaller end. Last time, I spoke to him, he was thinking of retiring, so leaving his clients further up the river without a paddle.
I think, it shows that we need to get alternative methods of finance in place. This is Funding Circle territory, but at the moment they are not big enough to replace much of ING’s portfolio.
It also illustrates a rule of my friend, David. Never bank with a bank head-quartered outside of the UK.
What Should We Do About The Ludicrous EU Budget?
These are not my words, but those of David Cameron speaking in Dubai, reported here on the BBC.
If you want to see the details of where all the EU’s money goes look at this article.
My conclusions from the graphs there are that too much goes on the Common Agricultural Policy and Administration. It is surely about time that the European Parliament was changed to only meet in Brussels. But that would annoy the French.
While The Big Cats Play The Rodents Strike
Whilst most people in the United States are preoccupied by an election, two British rodents and a few friends have struck.
ARM Holdings and Imagination Technologies are part of a consortium that has bought the rights to the majority of the patent portfolio of rival RISC chip business MIPS Technologies. It’s here on The Register.
This could be a very important deal for the British computer technology industry.
European Union Creates An Awful Smell
Apparently, the EU is proposing to ban certain ingredients used in perfumes. It’s all here in the Mail.
If the allergy police were to ban anything, how about stopping gluten in food?
No wonder the EU is so popular with the citizens of Europe.
The German Jihadist
This cautionary tale is in the Daily Mail and a few other papers.
let’s hope his story deters others from joining.
The Two Sides Of The Personal Banking Crisis
We have a personal banking crisis in this country and I suspect many parts of the developed world.
A headline in the FT says that the bill for mis-selling PPI has now passed ten billion pounds. And that only includes direct costs to the banks. What about the indirect costs to all of us, who never went near PPI, but are constantly plagued with all forms of nuisance calls and e-mails. Hopefully after the action of Richard Herman, these calls will stop.
We also have the story on the BBC about basic bank accounts offered to those with bad credit histories. Apparently,more and more banks are dropping these accounts.
So what does a basic bank account do. This
These are simple accounts which allow customers to have their wages, benefits, and cheques paid in.
Customers can gain access to their money from some cash machines, or the Post Office.
Bills can be made by direct debit from the account, but these accounts offer no overdraft facility or access to credit – unlike most standard current accounts.
According to the BBC.
In fact that is not unlike the facilities, I use my Nationwide account for.
Although, I do have a credit card, the ability to get my money from virtually all cash machines, full on-line access and a small authorised overdraft, which I never use.
But I never buy anything from my bank or phone them up.
So the opportunities for making money from personal accounts by retail banks from most of their customers is dropping like a stone.
Especially with investors like myself, who use things like Zopa to hold our savings and surplus cash.
It all sounds like to me, that there is a real gap in the market for a personal bank that has these characteristics.
On-line only.
No expensive High Street branches.
No phone lines, with all queries dealt with on-line.
No cheque books.
A simple savings account.
Small overdrafts.
Cash out from any cash point.
Even some of the new entrants to banking like Metro, Marks and Spencer and Tesco don’t seem to be ditching the physical branches. With all the work I did with a major clearing bank in the 1970s, I know that these contribute significantly to the cost of doing everything.
The only certainty is that banking will go this way and there is going to be a lot more empty spaces on the High Street. I just wonder what is going to fill them. We can only have so many mobile phone and payday loan stores.
It’s The Teachers Fault
This report says that the reason for the GCSE results fiasco, was that teachers marked course work too generously.
Surprise! Surprise!
It just illustrates the dangers of using course work to grade results in exams, that was pointed out by so many experts before the practice was introduced.
I might have benefited from course work in my English O level,but I doubt it, as it wasn’t my strongest subject. But at least I performed well enough in exams to just get a pass in both English Language and English Literature.
William Hague Has A Problem With A Snake
This non-news story ended up on the BBC’s web site.
Surely, with all the problems in the world, one dead snake could be consigned to the dustbin of history! Or it could be returned to Guyana, where it allegedly lived!
The Anonymous Widower 