"We need a new British business bank with a clean balance sheet and an ability to expand lending rapidly to the manufacturers, exporters and high-growth companies that power our economy. Today I can announce we will have one. I am working with the chancellor to develop a state-backed institution that will combine up to a billion pounds of new government capital with a larger private contribution."
Labour has published proposals for a policy that it says would force banks to lend more in deprived communities and encourage lending through third sector financial institutions.
...require banks to reveal what they lent in each community and to lend a minimum amount in every community.
Leeds City Credit Union (LCCU) will be hoping yesterday’s sentencing of former manager Beverley Johnson for fraud will mark the end of the most traumatic chapter in its 25-year history.Over the past five years, England’s biggest credit union has endured the fallout from chronic mismanagement which resulted in near complete financial collapse, two police inquiries, the former chief executive being forced to resign and finally an embarrassing court case thanks to a manager helping herself to the contents of members’ accounts.LCCU’s mismanagement has been the subject of a long-running Yorkshire Post investigation which first revealed serious concerns as far back as 2007.
LCCU was shown to (be) rife with cronyism and nepotism, including major breaches of financial rules through favourable loans provided to staff and their relatives.In one instance, the son of then chief executive Sue Davenport had received a loan for £14,205 when he was only entitled to £1,200. In another, Davenport’s daughter-in-law had been able to take part in processing a loan for herself at a preferential rate.Criticisms from the Financial Services Authority (FSA) were also highlighted, in particular Davenport’s ability to exert an inordinate amount of control over the books. A letter written by the FSA to LCCU as far back as 2003 specifically referred to “the risk of intentional manipulation” – a risk subsequently shown to be one Davenport was willing to take.