National Australia Bank said it would raise around $5.5 billion in a rights issue and planned to demerge its UK bank as it reported half-yearly cash earnings of $3.32 billion.
A £20.67m fine imposed on Clydesdale Bank by the FCA over serious failings in its PPI complaint handling process has sparked fresh speculation over the future of its parent National Australia Bank.
National Australia Bank's nightmare is about to deepen. Sam Dastyari, the high profile chairman of the influential Senate Committee on Economics, has taken the dramatic step of seeking co-operation from the British parliament.
In the summer of 2010 John Glare hit rock bottom. A financial landmine in his business loan with National Australia Bank's UK-based Clydesdale Bank had spectacularly gone off. It took his business and his home, and forced him into bankruptcy.
Parliamentary criticism of National Australia Bank's United Kingdom arm, Clydesdale Bank, has raised the risk it may face higher costs from compensating victims of misselling, which could affect plans to float the business.
A small businessman who claims he was bankrupted after being mis-sold a complex loan by Clydesdale Bank has launched a legal battle which could open the floodgates to further claims against High Street lending giants.
The action group for small business customers of Clydesdale and Yorkshire banks has urged the Financial Conduct Authority to put more pressure on the bank to widen its review into the mis-selling of complex loans.
