PATERNOSTER IS PUT UP FOR SALE
Paternoster, the specialist pensions business set up by former Prudential executive Mark Wood, has been put up for sale, with its original backers facing the potential loss of more than half their £500m equity investment. The majority of its backers are seeking an exit from a company that was forced to close to new business in the depths of the financial crisis. The company hopes to receive initial expressions of interest by September.
US BANKS GET BUY-BACK WINDOW
The Dodd-Frank financial reform bill has opened a 90-day window for banks to buy back $118bn (£76bn) in high-cost securities, a move that would enable them to replace the instruments with cheaper capital but is likely to cause tensions with regulators and investors.
MYNERS: LABOUR SHOULD RETURN TO GOLDEN RULE
Labour should return to the “golden rule” that current government expenditure should be covered by taxation, Lord Myners has argued. He said: “I am essentially arguing for the golden rule which Gordon so passionately believed in, but grew to forget. Through the economic cycle government expenditure should be covered by taxation and borrowing should be used for investment purposes.”
THOUSANDS OF AIR PASSENGERS AWAIT ASH CLOUD COMPENSATION
Almost four months after volcanic ash wreaked havoc for air passengers, thousands of frustrated flyers are still trying to claw back refunds from airlines. BA says it has already paid out millions of pounds in compensation to thousands of customers who were affected.
BIG HITTERS STAKE THEIR CLAIMS IN BATTLE FOR TOP LAW JOBS
Three of Britain’s elite law firms face leadership contests this year. The most closely watched battle is likely to be at Freshfields Bruckhaus Deringer where the chief executive Ted Burke has been challenged by William Lawes. Partners at Clifford Chance will elect a successor to Stuart Popham and Linklaters will seek a replacement for David Cheyne.
BAE MUST WAIT AS JUDGE PUTS £30M BRIBERY PLEA DEAL AT RISK
A landmark £30 million deal to settle corruption allegations against BAE Systems has been delayed amid fears that it could be thrown out in court. The plea agreement with the Serious Fraud Office, which brought an end to a six-year investigation into suspected bribery, is unlikely to come before the courts before November.
The Daily Telegraph
NATWEST BANKER CLAIMS HE WAS “TORTURED” INTO PLEADING GUILTY OVER THEFT OF $7.3M FROM RBS
Two of the “NatWest Three” bankers convicted in the US of stealing $7.3m (£4.7m) from Royal Bank of Scotland claim to have been pressured into making guilty pleas. In a video, Mr Mulgrew said the pressure from the US trial process was like “torture”.
LONDON’S NEW AIRPORT COULD BE IN BIRMINGHAM
London’s newest airport could be in Birmingham, thanks to improved rail links that will cut the journey time to London down to 38 minutes. With the coalition Government blocking expansion at Gatwick, Heathrow and Stansted, the West Midlands airport says it is “the solution” to the lack of capacity in the South East. Birmingham Airport boss Paul Kehoe said regional airports were a solution.
WALL STREET JOURNAL
BOA MAY REDUCE BLACKROCK STAKE
Bank of America has concluded that its 34 per cent share of BlackRock isn’t a core asset and is weighing a possible reduction of its holdings in the influential New York asset manager, said people familiar with the situation. No talks have been held about when or how this might happen, and Bank of America still could decide to keep the 64.7m common and preferred shares that it owns.
APPLE MANAGER ARRESTED
An employee of Apple was arrested on charges tied to his allegedly receiving at least $1m (£640m) in kickbacks from six companies in Asia that serve as suppliers to the firm. Paul Shin Devine, a global supply manager at Apple, was charged with offenses that include wire fraud, money laundering and unlawful monetary transactions.