Barclays To Pay Out £100m Over Loan Error

Barclays could have to pay out up to £100m to around 300,000 of its personal loan customers after making mistakes on their paperwork.

The customers could be in line for a few hundred pounds each from the issue, which dates back to October 2008.

A spokesman described the problem, which relates to arrears notices and statements, as "technical documentary errors".

It was revealed in a 185-page bank document in which Barclays stated it has "identified certain issues with the information contained in historic statements and arrears notices relating to consumer loan accounts".

The document added it was "therefore implementing a plan to return interest incorrectly charged to customers".

A Barclays spokesman said: "Barclays has proactively reviewed information it has historically sent to its customers relating to interest charges where we have found technical documentary errors.

"As a result Barclays has identified certain issues with the information contained in some statements and arrears notices relating to consumer loan accounts.

"Due to these notification errors, interest was not due on certain accounts during the period that Barclays made this mistake, and whilst no one has been mis-sold to, customers are entitled to have their interest payments returned.

"No customer will pay more than they were ever contractually expected to."

The bank added that it would contact all customers affected.

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Lloyds Stake Sale Raises £3.2bn For Taxpayer

The initial sale of taxpayer-owned shares in Lloyds Banking Group has raised £3.21bn for the Treasury - representing a small profit.

UK Financial Investments (UKFI), the body which oversees the public's stakes in Lloyds and RBS following their bailouts, said 6% of Lloyds Banking Group was sold to institutional investors at a placing price of 75p per share.

It means the taxpayer stake in Lloyds - rescued after its disastrous acquisition of Halifax Bank of Scotland at the height of the financial crisis - has been reduced from 38.7% to 32.7%.

The sale price represents a £61m cash profit on the 73.6p average price paid by the Labour Government in 2008 but it will register as a paper profit of £586m on the Treasury's books because its stake in Lloyds is recorded in the public finances as 61p per share.

The reduced cost took into account the fact that the Treasury had already received £2.5bn for insurance fees from Lloyds under the now-disbanded Asset Protection Scheme.

George Osborne says the money raised will help reduce national debt

UKFI confirmed that no further sale of the taxpayer's remaining 32.7% stake would take place for a further 90 days.

The public is expected to be given a chance to buy Lloyds stock in future sales.

Chancellor George Osborne kicked off the initial share sale on Monday night, five years after Lloyds was left needing a £20bn bailout.

He said today: "Five years ago the previous government forced British taxpayers to put a huge sum of money into bailing out the banks.

"That was a big ask of the British public. I have been determined ever since I became Chancellor to get that money back for taxpayers."

"I can confirm this morning that we have sold 6% of Lloyds Bank at 75p a share. That is a profit for taxpayers, and rightly so. The money will be used to reduce the national debt by over half a billion pounds.

Lloyds shares are trading below pre-crash levels (price correct at 08.14)

"This is another step in the long journey in putting right what went so badly wrong in the British economy; it's another step in repairing the banks; it's another step in getting the money back for the taxpayer; and it's another step in reducing our national debt.

"All of those things together are good news.

"If you look at what has happened over the last 12 hours with Lloyds, you have investors from around the world  investing in a British bank. That is a sign the British economy is turning a corner," he concluded.

Lloyds shares opened down more than 1.5% in early trading on the FTSE 100 on Tuesday - still trading more than 60% below its pre-financial crisis peak.

Nevertheless, the start of the re-privatisation marks a milestone for Lloyds, which hailed its recovery earlier this summer after swinging out of the red with half-year profits of more than £2bn.

Last week the bank re-launched TSB with a spin-off of more than 600 branches, which it was obliged to dispose of under European laws on state aid, which is expected to result in a flotation next year.

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Grand Theft Auto V Launch: 'Sickies' Expected

Grand Theft Auto 'Cut Above Rest'

Updated: 8:42am UK, Tuesday 17 September 2013

By Niall Paterson, Media and Technology Correspondent

First things first, this is just a video game - even if it is a particularly violent one.

So set aside the inevitable hysteria that surrounds the release of any title that invites moral individuals to make immoral decisions, and what is most striking about Grand Theft Auto V is just how cinematic it feels.

From its gloriously detailed cityscapes, to the villains straight out of central casting, to the non-linear freedom to roam that this sandbox game offers, GTA V comes the closest yet to making players feel like they are in a movie.

The game's creators, Rockstar North, have done more than their homework - they have created an entirely believable world, although admittedly filled with some fairly unbelievable characters and events.

Usually when playing a game you are fully aware that what is happening is a fiction.

Yet here, the artifice is almost unnoticeable, the usual barrier between player and completely immersive experience so slight as to barely register.

Yes, you still direct your character with a handheld controller. But you feel with your head, and your heart.

Mark my words, this game will sell by the blood-filled bucketload.

Estimates vary, but 25 million copies are expected to shift in the first 12 months.

Revenues could exceed $1bn the end of the year, and come close to £1bn not long after that.

GTA V is but the latest evidence that video games pose a real challenge to cinema's cultural dominance.

Last year the video games industry was valued at a little over £42bn. By 2014 it is estimated it will be worth almost £52bn.

Pity the residents of Sunset Boulevard. Global box office takings in 2012 amounted to just £22bn.

GTA V had a budget in excess of most Hollywood blockbusters and was five years in development. It shows.

Rockstar North have aped the style and the substance of the hugely profitable gangster genre.

As the midnight queues at games retailers up and down the country have proved, the British-based company clearly has more than a few wise guys in their ranks.

This is no niche industry. Wii-loving grannies; computer-literate toddlers; nostalgic '80s gamers returning to their youthful pursuits; and those who have never put down the joystick - never before have so many enjoyed the simple pleasures video gaming provides.

Except, clearly, the games are no longer simple. Far from it.

An incredible level of sophistication now permeates and characterises these strange new worlds.

Some will argue that the silver screen is dimming. Others, that we are simply demanding more engagement from our entertainment.

So much of GTA V's DNA comes from films that it would be obtuse to suggest that cinema is a dying genre.

But the experience video games provide will only become more immersive.

So perhaps, one day, the credits will no longer roll. End scene, cut, print.

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Bank Seven-Day Switch Scheme May Fall Flat

By Poppy Trowbridge, Business and Economics Correspondent

The Government wants banks to work harder to win your business and is backing an initiative to allow customers to swap current accounts within seven working days.

But exclusive research conducted for Sky News reveals that the public is largely unaware of the plan and among those in the know the Government's initiative is unwanted.

The so-called 7-Day-Switch scheme comes into effect today.

Customers wanting to swap banks can provide their preferred lender with personal details, the bank then makes all the arrangements to bring across salary deposits and bill payments - with a hassle free guarantee.

In a move to revitalise competition in high-street banking, Chancellor George Osborne confirmed the plans back in February after the regulator highlighted how little choice existed in the current account market.

But in a poll of more than 2000 bank customers, 44% of those surveyed said they had never heard of the service.

Of those who had, 53% would not even consider switching when the guarantee is in place.

That is perhaps because 82% say they are happy enough with their current account, another indication that the initiative isn't needed by many.

The four biggest banks in Britain - Lloyds Banking Group, Barclays, Royal Bank of Scotland and HSBC - control three quarters of the current account market, according to figures from the Office of Fair Trading.

That means switching accounts may not result in drastically better deals at one bank or another.

Ali Steed, a personal finance expert at mymoneydiva.com, says many of the rates and products don't differ much from bank to bank.

"At the moment, because interest rates are actually very low, the amount of money you can actually get on your savings - from anywhere on the high street - is not really going to put you in a position where you can beat inflation."

If the Government initiative is to have any immediate effect it is likely to be in customer service.

Michael Ossei, from uSwitch, says: "Banks will have to work harder to both attract new customers and keep their existing ones, which means that accounts must offer better value for money and customer service."

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Economy: Firms Demand Infrastructure Urgency

The CBI has launched a stinging attack on the Government, accusing the coalition of dragging its heels on delivering promised infrastructure spending to help lift the economy.

The business lobby group said it feared there was a "lack of political will" to get schemes off the ground with "too few signs of action" over the past two years on issues such as tackling potholes to the country's airport future.

It urged politicians to commit to immediate projects that were crucial to boosting exports and unlocking business investment.

A survey of 526 businesses by the CBI and accountancy KPMG found 65% of companies believed that Government policies would have no tangible impact, or could have even a negative effect.

Only a third of firms questioned - 35% - said they would make a difference on the ground, the study suggested.

John Cridland is the CBI's director-general

John Cridland, director-general of the CBI, said: "Government has talked the talk on infrastructure for the last two years with too few signs of action.

"The faltering speed of delivery on infrastructure creates a worrying sense that politicians lack the political will to tackle some of the major issues head-on."

He added the Coalition must commit to detailed delivery on a number of projects in the next 18 months, while starting the debate on longer-term issues such as road reforms and Britain's airport capacity.

Businesses are increasingly worried about the UK's creaking road network, with nearly half of all firms polled unhappy with domestic transport, up from 28% in 2011.

Energy costs are another major headache, with 95% of firms concerned about gas and electricity prices and 90% worried about security of supply.

Firms are also keen for ongoing improvements in Britain's digital infrastructure, with the survey showing more than 80% of firms consider faster and more reliable fixed-line and mobile broadband as critical to their success.

A Government spokesman responded: "At the Spending Round we set out £100bn of what the report highlights as 'bold ambitions and flagship projects which if delivered will provide a significant boost to UK competitiveness'.

"The Government's focus is now on implementing these plans."

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Barclays Braced For Fine Over Qatar Deals

By Mark Kleinman, City Editor

Barclays is braced for another major financial penalty over the deals that enabled it to escape British taxpayers' clutches by raising billions of pounds from private investors five years ago.

Sky News has learnt that the bank is negotiating a settlement with the Financial Conduct Authority (FCA) that could involve it paying tens of millions of pounds, according to people close to the talks.

A final agreement with the City watchdog is still being thrashed out and the size and nature of the penalties facing Barclays could still vary, they said.

Barclays had been trying to get the enforcement action resolved ahead of the publication of a preliminary prospectus for its £5.8bn rights issue, which could take place as soon as Monday afternoon.

The prospectus is expected to acknowledge that the settlement discussions with the FCA are taking place but a final deal is unlikely to be ready for inclusion in the document, according to a source close to the bank who said that talk of the details of a fine was "premature".

Investment banks which have agreed to underwrite the rights issue are said to have been keen for a "clear sight" of Barclays' exposure to a new financial penalty.

The negotiations with the FCA centre on whether Barclays should have disclosed more details to the stock market about the £11.8bn capital-raisings which allowed the bank to escape the state's clutches by raising capital from Qatari and other sovereign investors.

Barclays raised almost £12bn in 2008 to avoid needing taxpayer help

Assuming the discussions do result in a financial penalty, it would add to the mounting cost of Barclays' transgressions in recent years, which have included a £291m fine for its role in the manipulation of the interbank borrowing rate Libor.

The bank has also set aside billions of pounds to compensate customers who were mis-sold payment protection insurance and interest rate swaps, and been hit with a contested fine for rigging US energy markets.

The Serious Fraud Office and authorities in the US are also examining the Qatari capital-raising issue, and the progress of their investigations remains unclear.

In its half-year results statement during the summer, Barclays referred to the probes without providing further details.

"The FCA and the Serious Fraud Office are both investigating certain commercial agreements between Barclays and Qatari interests and whether these may have related to Barclays' capital-raisings in June and November 2008.

"The FCA investigation involves four current and former senior employees, including Chris Lucas, [former] group finance director, as well as Barclays.

"The FCA enforcement investigation began in July 2012 and the SFO commenced its investigation in August 2012.

"The FCA provided its preliminary findings against Barclays on 27 June 2013 in respect of some of these commercial agreements. Barclays has responded on 25 July 2013 contesting the FCA's preliminary findings.

"Barclays expects further developments in the near term."

John Varley, the bank's former chief executive, is also among those under investigation.

Barclays is seeking to raise almost £8bn from investors through a combination of new shares and bonds, following pressure from the Bank of England's regulatory arm to strengthen its balance sheet.

Among the investment bankers helping Barclays to raise the money is James Leigh-Pemberton of Credit Suisse, who was on Monday confirmed as the new head of UK Financial Investments, the body which manages taxpayers' stakes in Britain's bailed-out banks.

Barclays and the FCA declined to comment.

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Vince Cable Calls For Minimum Wage Increase

Business Secretary Vince Cable is pressing for an increase in the minimum wage amid concerns that many lower-paid workers are still not benefiting from the burgeoning economic recovery.

Speaking before the Liberal Democrat party conference in Glasgow today, Mr Cable said he would ask the Low Pay Commission to restore its value, which he estimates has fallen in real terms by 10% to 12% since the crash of 2008.

The minimum wage is currently set at £6.19 an hour but is due to rise to £6.31 on October 1.

"We cannot go on forever in a low pay and low productivity world in which all we can say to workers is, 'You have got to take a wage cut to keep your job'," he told told The Guardian.

Mr Cable said action to boost low pay should be combined with measures to tackle the abuses of zero-hours contracts.

"We have got to enter into a different kind of workplace. For a very long time, five or six years, wages have been suppressed in low wage sectors. I am sending a signal that we are entering a very different environment," he said.

In a further sign that cost of living issues are set to dominate the annual party conference season, his Lib Dem colleague - Treasury Chief Secretary Danny Alexander - urged employers to ensure that staff benefited in their pay packets as profits picked up again.

"It's not for me as a Treasury minister to start telling employers what their pay policies should be, that's a matter for firms," he told The Daily Telegraph.

"But of course, as growth returns to our economy and we see businesses being successful, the workforce will want to and should share in that success."

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Bank Seven-Day Switch Scheme May Fall Flat

By Poppy Trowbridge, Business and Economics Correspondent

The Government wants banks to work harder to win your business and is backing an initiative to allow customers to swap current accounts within seven working days.

But exclusive research conducted for Sky News reveals that the public is largely unaware of the plan and among those in the know the Government's initiative is unwanted.

From September 16 the so-called 7-Day-Switch scheme will come into effect.

Customers wanting to swap banks can provide their preferred lender with personal details, the bank then makes all the arrangements to bring across salary deposits and bill payments - with a hassle free guarantee.

In a move to revitalise competition in high-street banking, Chancellor George Osborne confirmed the plans back in February after the regulator highlighted how little choice existed in the current account market.

But in a poll of more than 2000 bank customers, 44% of those surveyed said they had never heard of the service.

Of those who had, 53% would not even consider switching when the guarantee is in place.

That is perhaps because 82% say they are happy enough with their current account, another indication that the initiative isn't needed by many.

The four biggest banks in Britain - Lloyds Banking Group, Barclays, Royal Bank of Scotland and HSBC - control three quarters of the current account market, according to figures from the Office of Fair Trading.

That means switching accounts may not result in drastically better deals at one bank or another.

Ali Steed, a personal finance expert at mymoneydiva.com, says many of the rates and products don't differ much from bank to bank.

"At the moment, because interest rates are actually very low, the amount of money you can actually get on your savings - from anywhere on the high street - is not really going to put you in a position where you can beat inflation."

If the government initiative is to have any immediate effect it is likely to be in customer service.

Michael Ossei, from uSwitch, says: "Banks will have to work harder to both attract new customers and keep their existing ones, which means that accounts must offer better value for money and customer service."

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Santander Bank Hacking Plot: Four In Court

Four men have appeared in court over an attempt to take control of computers at a Santander bank branch to steal millions of pounds.

It is alleged one of the gang posed as an engineer to fit a computer at the branch in Surrey Quays shopping centre, southeast London, with a "keyboard video mouse" (KVM).

The device, which can be purchased online for as little as £10, allegedly allowed them to transmit the contents of the computer's desktop and take control of all computers at the branch.

But the attempt failed and the Spanish bank said "no money was ever at risk".

Lanre Mullins-Abudu, 25, from Putney, southwest London; Dean Outram, 34, from northwest London; Akash Vaghela, 27, from Hounslow, west London; and Asad Ali Qureshi, 35, from southwest London, are charged with conspiracy to steal.

They spoke only to confirm their names and details when they appeared at Westminster Magistrates' Court on Saturday.

They are accused of committing a "very significant and audacious cyber-enabled offence" that would have cost Santander millions of pounds.

Vaghela was granted conditional bail and the others remanded in custody until the next hearing at Southwark Crown Court on September 27.

Eight other people who were arrested were bailed until mid-November pending further inquiries.

A Santander spokesman said no member of staff was involved.

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Vince Cable Calls For Minimum Wage Increase

Business Secretary Vince Cable is pressing for an increase in the minimum wage amid concerns that many lower-paid workers are still not benefiting from the burgeoning economic recovery.

Speaking before the Liberal Democrat party conference in Glasgow today, Mr Cable said he would ask the Low Pay Commission to restore its value, which he estimates has fallen in real terms by 10% to 12% since the crash of 2008.

"We cannot go on forever in a low pay and low productivity world in which all we can say to workers is, 'You have got to take a wage cut to keep your job'," he told told The Guardian.

Mr Cable said action to boost low pay should be combined with measures to tackle the abuses of zero-hours contracts.

"We have got to enter into a different kind of workplace. For a very long time, five or six years, wages have been suppressed in low wage sectors. I am sending a signal that we are entering a very different environment," he said.

In a further sign that cost of living issues are set to dominate the annual party conference season, his Lib Dem colleague - Treasury Chief Secretary Danny Alexander - urged employers to ensure that staff benefited in their pay packets as profits picked up again.

"It's not for me as a Treasury minister to start telling employers what their pay policies should be, that's a matter for firms," he told The Daily Telegraph.

"But of course, as growth returns to our economy and we see businesses being successful, the workforce will want to and should share in that success."

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