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Metro Bank Shares Plunge After Shock Fundraising Buzz
Metro Bank’s shares nosedived by 23% in early trading today amid reports it plans to raise a whopping £600m to shore up its finances. The UK challenger bank, which shook up the high street after the financial crisis, has yet to confirm the exact figure but admitted discussions about boosting capital are underway.
Capital Crunch Hits Metro Bank
The beleaguered bank, which serves around 2.7 million customers, has faced a rocky patch after regulators blocked its attempt last month to ease capital rules on its mortgage business. With £350m in debt due for refinancing next October, Metro Bank is scrambling to strengthen its balance sheet.
Credit rating agency Fitch has piled on the pressure by placing Metro Bank on negative watch, flagging concerns over its capital strength, funding, and shaky business model.
Cloud Market Faces Competition Crackdown
In a separate shake-up, Ofcom has launched a probe into the UK cloud computing market due to fears it’s dominated by just a few giants. Amazon and Microsoft control 70-80% of the market, with Google trailing at just 5-10%. Ofcom has passed the baton to the Competition and Markets Authority (CMA) to investigate whether this dominance is stifling competition.
The UK cloud sector, valued at up to £7.5bn in 2022, could see big changes if regulators decide to step in and shake up the tech titans.
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