The Liberal Democrats will today challenge the government to reveal how much money part-nationalised RBS and rival Lloyds have lent since a state bailout 12 months ago.
The issue threatens to embarrass the Labour Party before an election expected in May if the figures show the banks have failed to meet pledges to boost lending to home buyers and companies by a promised £39bn, Reuters reports.
Britain's two largest retail banks signed legally binding agreements last February and March to increase their mortgage and business lending in return for the government insuring £585bn of potentially bad debts.
But the two banks have fallen "well short" of the lending agreements, Liberal Democrat treasury spokesman Vince Cable will say in a speech at an event in London today. Read more...
SKIPTON BUILDING Society may face a legal challenge for breaking a guarantee linking the cost of its standard variable rate mortgage (SVR) to the Bank of England base rate, the Scotsman reports.
The UK's fourth-biggest building society angered customers last month when it removed a ceiling which protected borrowers from paying an SVR higher than 3% above the base rate.
Almost 30,000 of the mutual's 64,000 mortgage customers are on its SVR, which will rise from 3.5% to 4.95% next month, despite a base rate freeze at 0.5% since last March.
Skipton raised its SVR by exercising an "exceptional market conditions" clause in mortgage contracts. But the legality of this clause is being investigated by London firm Leon Kaye Solicitors, which said the mutual's move could contravene the Unfair Contract Terms Act 1977. Read more...
It shocks you
2,000 people surveyed
Six FTSE 100 female CEOs earning 32% less than men
It is the 'Second City'