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The Credit Cruncher was conceived to help you to keep up to date with credit crunch and recession developments, it provides some helpful credit crunch advice and it addresses personal debt. The Credit Cruncher also seeks to explain how the credit crunch started and shed some light on the worldwide recession. Recently, we have begun to look at how BREXIT will affect the UK economy. Please feel free to leave comments where relevant.

18 Feb 2009

Latest UK economic view

Gordon Brown has put pressure on Lloyds and HBOS to fall in line with the bonus crackdown that has been meted out to Royal Bank of Scotland. RBS has seen bonuses slashed by up to 90% after accepting £20bn from the taxpayers, making a total of £175m in bonus payouts this year.
Lloyds is in the spotlight for announcing potential bonuses of £120m after warning of annual losses amounting to £10bn at new sister-company HBOS.
In today's complex contractual environment, it seems that some bonuses are a legal requirement - in which case they should surely be ear-marked as salary?? The fallout from the bonuses wrangle is set to continue with the spotlight falling on any company that receives government backing.
The government is currently outlining a scheme to underwrite some of RBS riskier assets called 'toxic structured credit assets', this is designed to strengthen the position of the banks and will enable them to effectively 'cap' losses.
In other recession news, high street media retailer Zavvi closes it's doors on 20th February, although some jobs have been saved after deals with HMV stores and another company.

Related posts:
Government Intervention
Is this the new Great Depression?
UK reports GDP decline
Gordon Brown rescue plan

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