UK motor finance scandal reawakens ghost of PPI

11 April 2024BanksBarclays, Lloyds Banking Group, mis-selling, motor finance, NatWest Group, operational riskNick Dunbar

Our banking tool shows how payment protection insurance was a ‘slow burn’ op risk event that eventually cost UK banks $60bn. Could something similar happen with motor finance?

Smoke, mirrors and net interest margins

2 April 2024BanksAccounting, Barclays, derivatives, hedging, HSBCNick Dunbar

UK banks use accounting tricks and derivatives to boost their net interest margins, and HSBC is under pressure to follow suit.

Crunch time for LOBO derivatives

13 November 2023Municipal Finance, Risk CommentaryBarclays, interest rate swaps, interest rates, LOBOs, options, RBSNick Dunbar

UK interest rates have risen so much, that obscure options buried in local authority loan contracts are about to be triggered for the first time

Barclays and the question of reliance

25 February 2022Municipal FinanceBarclays, litigation, LOBOs, Newham councilNick Dunbar

An eve-of-trial settlement between Newham Council and Barclays brings a decade-long saga to an end but leaves open a key question in UK law.

Barclays LOBO waiver forestalls council legal threat

16 March 2017Municipal FinanceAccounting, Barclays, interest rate risk, LOBOsNick Dunbar

Why did the bank unilaterally waive LOBO provisions in loans last year, losing as much as £1 billion in the process?

Newham’s cracked crystal ball

10 November 2015Municipal FinanceBarclays, interest rate risk, LOBOs, local government, municipal finance, Newham councilNick Dunbar

Between July 2007 and November 2008, Newham council entered into 10 range LOBO loans with Barclays worth a total of £238.5 million. New information on the council’s controversial loan portfolio shows the impact of its relationship with Barclays, raising questions about risk management decisions.

A week in banking: what have we learned?

2 July 2012Articles, Banksbanking, Barclays, derivatives, interest rate benchmarks, JP Morgan, RBS, regulationNick Dunbar

In the last week, we saw major developments in two big scandals - Libor rigging and swap mis-selling in the UK - and the end of the second quarter which is likely to draw a line under a third big scandal - the 'London Whale' losses at JP Morgan. I have some thoughts about these…

The Volcker Rule and Barclays’ UK Bear Hug

15 November 2011Banksbanking, Barclays, public policy, regulationNick Dunbar

On Nov. 3rd, I attended the inaugural BBC Today Business Lecture, given by Bob Diamond, the chief executive of Barclays. The man who told the UK Treasury Select Committee that it was time to stop apologising for the financial crisis had been given an image makeover. Taking an ingratiating tone towards his audience of BBC…