London Scottish Bank, the troubled sub-prime lender and debt collector, expects to agree a plan with the Financial Services Authority to address its capital shortage by the time of its results on January 23, Robin Ashton, its new chief executive said yesterday. Financial Times
The Treasury is 'monitoring' the situation at LSB, which Ashton said would need to renew about a third of its £200m of committed bank funding this year.
Ashton, who took over at LSB four weeks ago, signalled there was no risk of a run on the bank as it was impossible for its 10,000 retail depositors to withdraw their £155.6m of fixed-term high interest bonds. 'The bonds can only be redeemed early if a depositor dies,' he said. 'This is not another Northern Rock situation,' he said. 'There are no liquidity problems and we have a very strong balance sheet.'