archiveNews in Brief

The Bank of England is examining the potential repercussions of a prolonged private equity boom’s reversal on UK businesses, amid mounting concerns over leverage, transparency and valuations. In a statement on Wednesday, the BoE’s Financial Policy Committee warned that “finance for riskier corporates could be particularly vulnerable to a significant deterioration in investor risk sentiment”. The FPC highlighted a heightened likelihood of a market correction, pointing to rising prices despite an uncertain economic outlook.Officials also announced plans to scrutinise the relationships between private equity firms, grappling with increased borrowing costs, and the UK companies...

NatWest Group announced on Monday that the UK government is no longer a majority shareholder in the bank as its stake dropped below 30 per cent. NatWest, formerly known as the Royal Bank of Scotland, has been majority owned by the British government since its £46bn bailout during the 2008 financial crisis.The decline in government ownership, from over 45 per cent in late 2022 to 29.8 per cent currently, follows consistent daily sales and a £1.3bn buyback in May last year. At the outset of 2024, the government held just...