Abbey forced to boost ScotMut funds - papers 12 July

Abbey National was forced to inject £180 million into Scottish Mutual, its life insurance subsidiary, to counter the adverse impact of a plunge in stock markets earlier this month, the Times newspaper reports this morning. The funds were required to overcome severe restrictions on its ability to write new business. The bank apparently took action at the same time as Scottish Mutual prepares to write to thousands of policyholders giving warning that they face exit charges if they seek to withdraw funds from some savings products. The extent of the impact of the market downturn on Sco...