TSB UPS RATE AFTER CHAOS

Embattled TSB has announced a £20million bid to repair its image in the wake of this week’s IT problems.

The cost comes from the bank waiving overdraft fees and interest charges for April and upping the rate on its Classic Plus account to 5%.

Boss Paul Pester insisted he was “putting things right”, despite its internet service still only working at around 50% capacity.

He said what happened was “not good enough”, but wouldn’t say if he would give up his bonus. “It is a board decision.”.

TSB has hired a crack team from IBM to resolve the issues. The bank was to complete a major IT system upgrade last Sunday, but problems caused persisted into a third day. Delays meant customers were left unable to access their money online. A mega merger between two of Britain’s biggest energy suppliers risks landing customers with higher bills, the competition watchdog warned yesterday.

The Competition and Markets Authority said the tie-up between SSE and Npower meant households could be left with less choice. It has given both firms a week to allay its initial concerns.

If they fail, the watchdog could launch an in-depth ‘Phase 2’ investigation which could stretch on for months or even potentially scupper the deal. A US hedge fund which triggered the sale of Costa Coffee is to snap up bookshop chain Waterstones.

Elliott Advisors has reached a deal to buy the stores for an undisclosed amount.

The move was announced just 24 hours after Whitbread confirmed plans to sell Costa.

Elliott was one of two ‘activist’ hedge funds piling pressure on Whitbread to offload the coffee giant in a potential £3billion stock market flotation.