Forex probe widens to 15 banks
The global probe into foreign exchange manipulation has widened to include 15 of the world’s biggest banks and some of the most actively traded currencies, as lenders scramble to help authorities in exchange for leniency. The UK’s Financial Conduct Authority – one of seven regulators handling the worldwide investigation – has in so far requested information from at least 15 banks, according to two people close to the situation. The rapidly accelerating probe is looking at whether traders manipulated markets by sharing information and trading ahead of their clients. Investigations are focusing on the euro-dollar market.
Carney brings luck of the Irish to BoE
Since his arrival as governor of the Bank of England in July Mark Carney has enjoyed rising growth, falling unemployment and rapidly moderating inflation. That cannot have been much of a surprise to the Bank or Treasury as on Tuesday night both confirmed that the Canadian has also held Irish citizenship since 1988 when he started working for Goldman Sachs in London.
Swiss poll stirs debate on pay
Since the financial crisis, the pay of top executives has become a fraught topic in many countries. On 24 November, the Alpine nation will hold a referendum on a proposal that, if accepted, would make it illegal for businesses to pay any staff more than 12 times the wage they pay their lowest earners.
Irish central bank “warned” RSA
Ireland’s financial regulator spotted a problem at RSA’s local operations months before the insurer told investors that it had encountered turbulence in the country and suspended three directors as part of an investigation, it emerged yesterday. It is understood that the Central Bank of Ireland identified an issue with a single large insurance claims loss in Ireland in August.
Winklevoss twins struggle on bitcoin
At the New York Times Dealbook conference yesterday, the Winklevoss twins tried to convince a sceptical audience that the bitcoin currency in which they have invested $11m (£6.88m) is not a bubble. It’s “gold 2.0”, they claimed.
The Daily Telegraph
Starbucks told to pay Kraft $3bn
Starbucks has been ordered to pay Kraft Foods almost $3bn (£1.88bn) after ending their coffee deal early. The total amount, decided by an arbitrator, is comprised of $2.23bn in damages plus $527m in pre-judgment interest and fees.
BA battles on in pensions dispute
British Airways has said it will continue to fight its former employees battling to recoup money from the airline’s pensions fund, after the first of the cases to come to court has been judged in the employee’s favour. BA was this week ordered to pay Ian Fullerlove, a retired captain at BA, £1,200 to settle his claim brought as part of a two-and-a-half year fight.
THE WALL STREET JOURNAL
Garbage Piling Up in Madrid
Blowing trash and burning garbage bins clogged the elegant boulevards of this financially strapped capital as a strike by street sweepers protesting austerity-driven job cuts entered its second week, prompting some residents to call for the army to step in.
Microsoft Abandons “Stack Ranking”
Microsoft announced yesterday that it is abandoning major elements of its controversial “stack ranking” employee-review and compensation system. The system meant a small percentage of workers had to be designated as underperformers.