Scottish Widows has been accused of giving negligent advice that has resulted in total losses of around £300m for 100 pension schemes. A dossier of evidence has been sent to the Financial Services Authority (FSA) for them to review by an organisation called the Actuarial Review Company (Arc). (more…)

Following a meeting between Mervyn King, Governor of the Bank of England and the Chief Executives of Barclays, HBOS, HSBC, Lloyds TSB and RBS, it is understood that Mr. King is considering allowing the use of a wider range of assets to stand as collateral. Importantly this includes mortgages.

Mr. King had been reluctant to do this as he did not want to be seen to be bailing out Banks that had acted irresponsibly in the current economic climate. Whilst considering relaxing the criteria, the Bank has agreed to make an additional £5bn a week available to the Banks until the next interest rate meeting on the 9th April.

The extra funding was much needed as it was three times oversubscribed. This very fact indicates there is still significant pressure within the banking system.

The share price of Alliance & Leicester has headed north amid speculation that the mortgage lender will be the subject of a takeover. Lloyds TSB, who’s own recent results proved that playing it steady pays off, is mooted as a front runner.  Lloyds stated that it was on the lookout for buying opportunities as the recent credit crunch bites.

Lloyds TSB reported a 6% rise in profits to £3.7bn in 2007, compared with £3.6bn in 2006, despite the credit crunch. It attributed its successful performance to ‘good old fashioned banking’ an approach that smaller banks such as Northern Rock and Bradford & Bingley should have taken notice of. Lloyds share price rose 5% on the back of this news.

Lloyds is keen to reinvest some of these profits and is on the lookout for buying opportunities created by the uncertainty in the markets. The money will undoubtedly be spent wisely as Lloyds is seen as a conservative player in the banking sector. With returns like these, Lloyds has proved that this is the best approach to adopt in times of trouble.