New bank application could generate finance jobs

Those seeking banking operations jobs in London may be keen to learn that a US private equity giant is understood to have applied for a UK licence.

Blackstone wants to establish itself as a financial services business in Britain and is seeking approval for its plans through the Financial Services Authority (FSA), according to AltAssets.

If the watchdog approves the licence application, then a new entity, Home and Savings Bank, will be created alongside fund manager Cambridge Place offering mortgage and savings accounts to customers based in the UK.

The news source reported that Peter Birch, former Abbey chief executive, has been chosen as chairman of the proposed new £200 million venture, which is preparing to launch if the FSA gives it the green light and is also understood to have held talks with Virgin Money over a possible purchase of Northern Rock.

Meanwhile, Blackstone chief executive Stephen Schwarzman confirmed to Reuters that the organisation is looking into entering the UK banking sector during a conference in Riyadh, Saudi Arabia, although he did not confirm whether or not a licence had been applied for.