U-turn secures'people's bank'.

U-turn secures'people's bank'

The government is ready to make major concessions to high-street lenders to secure their backing for a universal bank, which will operate throughout the Post Office's 18,000 branches.

Department of Trade & Industry negotiators have signalled that stand-alone internet banks, utility companies and other retail financial-services firms will all be asked to help fund the so-called "people's bank".

u Some of Railtrack's big City shareholders are threatening a rebellion over plans to leave the lame-duck chairman Sir Philip Beck in place until next summer. The institutions last week told Railtrack's financial adviser, Cazenove, they want a strong executive chairman in place well before Beck's planned resignation at the annual meeting on 24 July.

A lack of experience on the Railtrack board after the departure of chief executive Gerald Corbett nine days ago is casting a cloud over the share price.

u Oil bosses are warning of winter power and petrol shortages in America - and analysts forecast rationing and blackouts. BP Amoco chief executive Sir John Browne is among those predicting that harsh weather there could put too much strain on already overstretched supplies. Freezing weather has hit the US East Coast states.

u The government has scrap-ped plans to stop banks and building societies forcing borrowers to buy expensive insurance as a condition of getting a home loan. Trade secretary Stephen Byers has run out of time to include legislation ending mortgage tie-ins in the Queen's Speech on 6 December, so action is unlikely before the general election.