News & Current Affairs

September 17, 2008

Investors edgy as US stocks fall

Investors edgy as US stocks fall

A trader reacts to news in the Philippines

Investors are concerned that financial markets will remain volatile.

US stock markets sank in early trade on fears the bailout of insurance giant AIG would not be enough to dispel the gloom engulfing the financial world.

AIG’s rescue and a potential takeover of UK lender HBOS had earlier boosted confidence in Asia and Europe.

But markets were volatile as nervous investors tried to make sense of the dramatic events that have unfolded in recent days.

The widely watched Dow Jones industrial average was down 1.9% at 10,849.

Top UK mortgage lender HBOS, which has faced heavy selling this week, fell as much as 50% before recovering after it emerged that it was in advanced talks to be taken over by Lloyds TSB.

HBOS shares were down 13% at 160 pence in London, the biggest faller in the FTSE 100, after being the top gainer at one point.

It has been a tumultuous week on financial markets, with significant changes in the financial landscape.

Key events on Wednesday included:

  • Beleaguered HBOS in merger talks with Lloyds TSB after a steep fall in its share price
  • US insurance giant AIG being bailed out by the US government
  • Volatile stock markets as global investors remain nervous
  • Trading on the Russian stock exchange being suspended
  • Barclays snapping up key assets from Lehman Brothers after its bankruptcy

I don’t think anyone has got any or much confidence in market direction for more than a few days
Darren Winder, Cazenove

The FTSE 100 index of top UK shares was down 0.48% at 5,001.4, reversing earlier gains, with some banking shares hard hit.

Shares in Barclays were up 9.8%, Lloyds TSB climbed 7.9% while Royal Bank of Scotland was down 2.6%.

Topsy-turvy trade

Trade is likely to remain rocky amid concern that financial system instability will continue after the dramatic events of the past few days.

“I don’t think anyone has got any or much confidence in market direction for more than a few days,” said Darren Winder, a strategist at Cazenove.

AIG’s bail-out follows the collapse of US investment bank Lehman Brothers, which caused share prices to plummet across the world’s financial markets.

Another investment bank, Merrill Lynch, has been sold off to Bank of America.

France’s Cac 40 share index was down 0.24%, while Germany’s Dax index was 0.64% lower, reversing earlier gains as Wall Street opened.

Russia’s stock exchange suspended trade following steep falls in shares.

Asian shares had a mixed session. Stocks in Tokyo, Taipei, and Seoul all rose, although prices in Hong Kong, Shanghai and Australia lost ground.

Japan’s Nikkei 225 index ended up 1.2% at 11,749.79, having risen by as much as 2.3% earlier in the day. The index had hit a three-year low on Tuesday.

Hong Kong’s Hang Seng index ended down 3.6% at 17,637.19 points.

August 26, 2008

Bank customer data sold on eBay

Bank customer data sold on eBay

EBay sign

eBay was first launched as Auction Web in 1995

An investigation is under way into how a computer containing bank customers’ personal data was sold on an internet auction site.

The PC, which was reportedly sold for £35 on eBay, had sensitive information on the hard drive.

The Royal Bank of Scotland (RBS) and its subsidiary, Natwest, have confirmed their customers’ details were involved.

RBS says an archiving firm told it the PC had apparently been “inappropriately sold on via a third party”.

It said historical information relating to credit card applications for their bank and others had been on the machine.

The information is said to include account details and in some cases customers’ signatures, mobile phone numbers and mothers’ maiden names.

RBS and Natwest – two of the three businesses involved – said they are taking the issue very seriously and are working to resolve it “as a matter of urgency”.

A spokeswoman for data processing company Mail Source, which is part of the archiving firm Graphic Data, said it was investigating how the computer equipment had been removed from a secure location.

“The IT equipment that appeared on eBay was neither planned nor instructed by the company to be disposed.”

Clearly such details should never have been included in the hard drive of the computer offered for sale on eBay
eBay spokesman

When financial data goes missing

She said the incident was extremely regrettable and the firm was “taking every possible step” to retrieve the data and ensure it was an isolated incident.

It is thought the problem came to light when Andrew Chapman, an IT manager from Oxford, bought the computer, noticed the data and raised the alarm.

The Daily Mail said the computer, containing a million bank customers’ personal data, had been sold for £35.

A spokesman for eBay said they were currently looking into what had happened.

“Clearly such details should never have been included in the hard drive of the computer offered for sale on eBay. We fully expect Mr Chapman to hand it back to Graphic Data as soon as possible. We will of course work with Graphic Data to establish how it came to be available for sale on our site.”

Banks have an obligation under the Data Protection Act to keep all personal information secure.

Last year the Financial Services Authority fined the Nationwide Building Society £980,000 for a security breach, after a laptop containing customer data was stolen from an employee’s home.

Create a free website or blog at WordPress.com.