A bad day for bankers
September 16th, 2008 | by abigail |Yesterday was a bad day not just for those that work in places like Londons Canary Wharf but for anyone who has a Bank Account, Pension Fund or Mortgage.
UK Inflation is at a 16 Year High, Bank of England Governer Mervyn King had to write a letter to UK Chancellor Alistair Darling explaining why the cost of living was running at nearly two and a half times the government’s 2% target.
Mervyn King Predicts UK Inflation will hit at least 5% maybe even higher, Oil prices are however falling fast and this should help ease the pressure somewhat.
In Canary Wharf 4,500 are to be made unemployed by their employer the bankrupt investment bank Lehman Brothers, they may not even get paid this month. The British arm of the bank was placed under the administration of acountants PriceWaterhouseCoopers on Monday to defend itself from creditors.
The banks assets, worth $600bn, will be divided up and worldwide approximately 25,000 people might lose their jobs.
Barclays Bank is eyeing up Lehman Brothers more profitable parts. The Bank of America will be taking over the iconic investment bank Merrill Lynch for a fraction of its previous worth.
American International Group (AIG), the world’s largest insurance company and sponsors of Manchester United is also said to be on the ropes.