Sectors: Financials

Bank of England governor Mervyn King has upset many in the banking world by warning that radical reforms to the tarnished sector are still needed. In a trenchant speech to the financial community in New York, King insisted that the new ‘Basel III’ international capital requirements for banks were only ‘a small step’ towards a safer financial system.
  
Dismissing as ‘exaggerated’ bankers’ concerns that the new Basel standards went too far, King declared necessary future reforms could include ‘much, much higher’ equity buffers in financing. However, while agreeing that there was a ‘sound case’ for a banking levy along the lines of the government’s planned £2.5 billion impost, King warned it would be misguided to see this as a key to creating a safer system.

On a different plane, trade finance specialist Ultimate Finance Group has agreed to buy complementary concern Ashley Commercial Finance in a £4.75 million to £7.45 million deal. Bristol-headquartered Ultimate has raised £1.83 million in a placing at 12p and arranged a bank facility of up to £2 million with Lloyds Banking Group to help fund this reverse takeover.