Financial News

By Vikki Graves

HSBC asks shareholders for £12.5bn

Chairman Stephen Green said the funds would be used to see the group through the current uncertain economic climate.

The news comes as HSBC announce pre-tax profits of £6.5bn for 2008, a 62% fall on the previous year.

There was a drop in share prices across the banking sector this afternoon, with HSBC shares down by as much as 19%.

Row over Sir Fred’s RBS pension continues

Pressure is still mounting on former Royal Bank of Scotland Chief Executive Sir Fred Goodwin to give up a large part of his £693,000 annual pension.

Deputy Labour Leader Harriet Harman has said that the government is prepared to take measures to prevent him from receiving the full amount.

Meanwhile, it has come to light that RBS are still paying for Sir Fred’s personal security costs, including CCTV and security staff at his home.

Tesco to create 200 jobs in Edinburgh

Tesco Personal Finance is expanding its banking operation in the capital.

The supermarket’s financial arm, which currently employs 250 staff will move to a new, larger headquarters in Haymarket within the next year.