Government adviser Lawrence Tomlinson has told MPs his dossier of complaints against Royal Bank of Scotland’s restructuring division has expanded to more than 1,000 claims since the publication of his report last year, The Telegraph reports.
At the time of the report, which claimed RBS was “killing off” small businesses for its own profit, Mr Tomlinson said he had been contacted by 200 companies. He said he had included 23 companies in his report to illustrate bad bank behaviour, of which 20 were clients of RBS.
The government advisor told the Treasury Select Committee yesterday that more than 1,000 companies have now come forward with allegations of “morally wrong” treatment due to RBS restructuring division.
Carney warns Scotland on currency
Bank of England governor Mark Carney has warned an independent Scotland would need to surrender some sovereignty in a monetary union with the remaining UK to avoid the mistakes made in the eurozone, the Financial Times reports.
In his first major intervention of Scottish independence Mr Carney said the two capitals would have to carefully consider how to resurrect a durable currency union in the event of Scottish independence, as there are “clear risks if these foundations are not in place”.
The Scottish government has maintained it would keep the pound as it’s formal currency if Scots voted for independence in September’s referendum. However, the UK Treasury said it is highly unlikely such an agreement could be reached without restrictions being placed on Scottish monetary and fiscal policy.
Fed continues emergency bond cuts
According to the Daily Mail, the US Federal Reserve last night said it will once again reduce its monthly bond buying exercise as the recovery has picked up pace.
The Fed will reduce its monthly bond-buying programme by $10bn (£6bn) from February to $65bn (£39bn) a month, according to the minutes of the latest meeting, published last night. This is the second time it has eased off pumping emergency funds after it cut the rate from $85bn (£51bn) to $75bn (£45bn) in January.
Yesterday’s move was widely expected in spite of recent turmoil in emerging markets and after the announcement the Dow Jones was down 151 points at 15,777.
Mr Bernanke hands over the reins to Janet Yellen tomorrow (31 January) after eight years as the head of the Federal Reserve.
Cable demands answers from Lloyds head
Vince Cable, business secretary to the Treasury, has demanded an urgent meeting with the head of Lloyds Banking Group after the bailed-out bank made more than 1,300 cuts to the number of its small business experts, the Guardian reports.
Mr Cable wrote to António Horta-Osório last night after Lloyds said half the relationship managers handling small business queries that their roles were being made redundant as part of a long-running strategic review.
Total cuts under Mr Horta-Osório, who took the helm in March 2011, now stand at 11,760.
Sainsbury’s King waives £1.7m severance package
Justin King, Sainsbury chief executive, will be stepping down after ten years in his role, following an announcement on the London Stock Exchange, the Telegraph reports.
Despite market analysts such as HSBC praising Mr King’s tenure, Mr King has waived a £1.7m severance payment he was entitled to. He also has a non-compete clause in his contract that means he cannot work for a rival retailer until a year after his departure in July.
The announcement said Mr King will leave the retailer at its annual meeting in July and will be replaced by Mike Coupe, the group commercial director who was widely regarded as the favourite to succeed Mr King
More than £150m was wiped off the value of Sainsbury’s following the announcement, with shares in the company falling 2 per cent.
