Article Abstract:
The UK banking industry has greatly improved its earning power by using the recession as an excuse. This reflects the unique ability of the industry to raise their prices as demand cools off, appropriating decreased pre-tax profits and lowered dividends as justification for increases. As a result, the image of the banking industry hasconsiderably suffered among customers who realize too late that the high price of money and of service does not indicate quality of service or degree of risk but the need to subsidize insolvent clients. On the other hand, banks also tendto lose in this situation, as evidenced by their resultant unprofitability brought about by bad debts. These problems can be alleviated if customers accept that they are the victim of a recessionary economic situation, not of banking connivance, and if banks learn the art of money lending and of judging economic cycles. A prognosis on the future of the UK banking industry is discussed.
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Article Abstract:
The acquisition of Midland Bank PLC by the Hongkong and Shainghai Banking Corp brought an end to the existence of what was once the world's largest bank. Midland Bank was founded by a former Bank of England inspector, Charles Geach, in 1836 and was brought to national prominence under the leadership of Sir Edward Holden who acted as chairman from 1908 to 1919. The bank's success was due to a string of acquisitions, buying some 30 banks from 1851 to 1918. Ironically, the bank's decline could also be attributed to acquisitions. In 1980, Midland bought California-based Crocker National Bank which proved to be a very bad investment. This, combined with bad management decisions, lost opportunities and plain bad luck, led to the collapse of one of the banking industry's most successful firms. After a bitter fight with Lloyds Bank PLC, Hongkong and Shanghai Bank became the new owner of the Midlank for the price of 3.7 pounds sterling.
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Article Abstract:
The top clients of British accounting firm PriceWaterhouseCoopers will have the opportunity in January 2001 to meet the company's new policy adviser, retired US Congressman Bill Archer, who is also a friend of President Bush and his family. Archer hopes to provide insight into the new Bush administration.
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