Tag Archives: bank

A new fraud hits the financial world

A new act of fraud hits the world of business and finance. It may seem unbelievable but Bernard Madoff has stolen $50 billion with the use of a complex system of hedge funds. This system imitates the Ponzi’s system and if manipulated it can be used to commit multiple fraudulent acts. However this illegal act is unfortunately not fool-proof.
Mr Madoff is an American citizen and 70 years of age – he is a famous trader and businessman but now he finds himself in a cell: he risks incarceration for 20 years and paying $5 million, though the victim’s losses far exceed his fines.
The breadth of this case encompasses banks from many countries including British firms. Here are some news cuttings from the British press:

Bloomberg reports the story and asks where all the money went. “Investigators are still trying to figure out where customers’ money went. Madoff, 70, told his sons last week he had as much as $300 million left, according to an SEC lawsuit filed in federal court in Manhattan. The agency is looking for additional money that may be recovered for victims, two people said. In a regulatory filing in January, Madoff’s firm listed $17 billion in assets under management”.

The Guardian.co.uk describes this as the worst fraud in history. “Madoff is himself regulated by the FSA, along with his two sons, his brother Peter and six other registered individuals, though his eponymous London-based offshoot. However, Stephen Raven, chief executive of London-based Madoff Securities International, said the firm was “not in any way part of” the New York company caught up in the alleged scam”.

The Timesonline.co.uk reports reports the list of the victims, a list that keeps increasing: Royal Bank of Scotland, HSBC and Santander, the Spanish group that owns Britain’s Abbey, Alliance & Leicester and Bradford & Bingley…

How to save money – Lesson 2

Today the Bank of England has said (again) that next year the UK will have to prepare for a recession. The experts have predicted that inflation could fall to 1% in 2010. All the while unemployment soars above 1.8m.
It’s time to save money for the ominous future, because every penny saved is a penny earned. And you can easily save money with a bit of control over your food, at home, going out and finance.

Last week we touched on food, now here are our suggestions to save money at home:

• Turn off the lights when you leave a room.
• Fit energy-saving light bulbs: they’re kind to the environment and they save you money in the long run.
• Take a shower, not a bath: it uses a lot less water and therefore saves on heating.
• Hanging out the washing is free: don’t use the energy-thirsty tumble dryer.
• Turn down the thermostat on your central heating by just one degree when you leave the flat.
• Check always your gas and electricity bills.
• Gently heat rooms you don’t use.
• Ensure that you don’t have leaky windows and doors.
• Fit loft insulation: some councils offer grants.
• Don’t leave electrical equipment, such as TVs and stereos, on standby: it wastes electricity.

Safe/banks? Protect your money from dark Mondays

UK interest rates cut by 0.5% as US Federal Reserve leads co-ordinated effort across the world to restore economic confidence. In this catastrophic period for financial markets and particularly after the disastrous events of Monday, people are questioning the safety of their savings, pensions and nest-eggs.

So let’s have a look at which is the best bank for you and your business, taking in to account the recent turn of events. On this page you can find a form with the main UK bank accounts that compares and applies 40 UK bank accounts, savings, current accounts and ISAs.

Made Simple Group provides you with 5 banking and special services for start-up businesses: check here tomorrow for all the details!

The dark Monday increases the fear of a recession

After a terrible day for worldwide economic stability, banks and governments are taking steps to try and save their country’s businesses from feeling the effects of the ‘credit crunch’. National banks mint more money and Finance Ministers work on new rules to control and protect the savers and the investors.

Many are calling for an official statement on the crisis today, feeling that this latest fall in bank shares is juts the latest chapter in a seemingly endless economic downturn.

Here is our selection of some of today’s essential Business headlines.

  • Panic swept through the world’s financial markets yesterday, wiping $2.5 trillion from share values, amid concern that regulators and politicians were struggling to get a grip on the worsening crisis of confidence. [Timesonline.co.uk]
  • The really urgent issue is the breakdown of wholesale markets, and the increasing difficulty that almost all banks are having in funding themselves on a day-to-day basis. [BBCNews]
  • After the worst day’s trading in over 20 years, analysts had hoped for a relief rally, with speculation growing of concerted central bank action on global interest rates. … Yesterday £93bn was wiped off the FTSE 100 as the leading index plunged by 391.1 points – its third worst daily decline in percentage terms ever. [Guardian.co.uk]
  • Iceland sought a 4 billion-euro ($5.43 billion) loan from Russia, pegged the slumping Kroner to a basket of currencies and took control of its second biggest bank to stem a collapse of the financial system. [Bloomberg.com]