Higher salaries to offset bonus cap
Four out of five European banks plan to raise executive base salaries to counter regulation-driven bonus cuts next year, potentially undermining the effectiveness of the planned variable pay cap in bringing down pay. An EU-wide bonus cap will from 2014 limit variable pay to up to twice the level of salary. However, 79 per cent of European banks surveyed by Mercer, the consultancy, said they were planning to raise base pay for the employees affected. Half the banks said they would keep overall pay levels mostly unchanged next year.
Four traders sue Deutsche Bank
Four former Deutsche Bank traders have sued Germany’s largest lender for wrongful dismissal, after being fired in an internal investigation into the manipulation of benchmark interbank lending rates. The traders are suing at a German labour court in Frankfurt, where they used to work at the bank’s money market desk.
UK and Ireland plan visa-free area
London and Dublin plan to create a “mini-Schengen” area to enable business travellers and tourists from fast-growing Asian economies to travel on common visas between the two islands.
JC Flowers to buy Northern Rock loans
American private equity company JC Flowers is set to buy £450m of Northern Rock loans from the government in what will be one of the biggest deals of its type. Negotations are in the final stages and an announcement is likely within the next few days.
Monsanto drops GM in Europe
Biotechnology company Monsanto is to abandon attempts to launch new genetically modified products in Europe after years of frustration with bureaucrats in Brussels.
The Daily Telegraph
Many behind on business rate pay
One in seven business premises has been hit with a court summons over the past year after the occupier fell behind with business rate payments, equivalent to more than 250,000 business premises in England.
BT attacked over rural broadband
Telecoms executives attacked the government for “moving the goalposts” on a subsidy scheme to provide superfast broadband to rural homes and businesses so that BT was effectively awarded £1.2bn in public money without competition.
THE WALL STREET JOURNAL
EU seeks power over radio spectrum
The European Union’s executive body wants greater power to reject government plans to auction off valuable radio spectrum, according to new proposals for EU legislation, a step likely to be seen in some member countries as excessive intrusion into their national affairs.
Passengers sue over Asiana crash
Two passengers aboard the Asiana Airliens flight that crashed while touching down in San Francisco have sued the airline.