Alistair Darling should reject setting up an American-style mortgage agency as a way to give a long-term boost to the crippled housing market, according to Sir James Crosby, the former chairman of HBOS, The Times reports.
Sir James, who was commissioned by the Chancellor to find ways to get the stagnant mortgage market running again, will deliver his interim report today. In it, he is expected to reject any suggestion that the Government set up a mortgage agency similar to Fannie Mae and Freddie Mac, the two troubled American companies that nearly collapsed recently.
Much has been said about the case for launching an American-style agency, but it seems unlikely that it would be right to tackle Britain's problems with last century's solution, particularly given the time that it would take to create any such agency, Sir James will say.
TESCO, BRITAIN’S BIGGEST retailer, has made a major push into banking to cash in on "faster growing markets than food" with a £950m deal to buy Royal Bank of Scotland out of their joint venture, according to The Telegraph.
The supermarket's finance director, Andrew Higginson, is moving sideways to lead the assault as chief executive of retail services, a new board position. He will head a strengthened team that will see Benny Higgins, formerly head of retail banking at RBS and HBOS, join as chief executive of Tesco Personal Finance.
Tesco is also moving into other services, such as telecoms, and Lance Batchelor will move from UK marketing director to become chief executive of Tesco Telecoms.
BARACK OBAMA WAS joined by the world's wealthiest person, Warren Buffett, and a number of entrepreneurs, economists and union leaders for a summit in Washington yesterday to find ways out of America's economic crisis, The Guardian reports.
Obama, who returned to the US from a 10-day overseas visit on Saturday, sought to switch yesterday from foreign affairs to the economy, the issue that Americans tell pollsters will determine their choice of the next president. "People are worried about gas prices, they're worried about job security, they're worried about their retirement fund as the stockmarket goes down," Obama said before the summit.
"People are understandably concerned about the immediate effects of the economy, and that's what we will be talking about for the duration."IFAonline
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