BLOW TO BANK CRISIS PLANS
Regulators are struggling to create a global mechanism that could wind down a big financial institution without the disruption caused by Lehman Brothers’ collapse in 2008. The US is due to propose its own “resolution” regime. But policymakers attendingmeetings around the Internationa Monetary Fund have criticised the regime and said agreement on it was unlikely.
CDC FACES SHAKE-UP AFTER ANGER AT PAY
CDC Group, the state-owned private equity investor in emerging markets, faces an overhaul of its structure, strategy and executive pay under plans to be announced by the government. The £2.5bn taxpayer-funded development group has struggled to meet objectives of reducing worldpoverty and making profits.
GOOGLE TO MAP INFLATION USING WEB DATA
Google is using its vast database of web shopping data to construct the ‘Google Price Index’ – a possible alternative to official statistics. Google’s chief economist, Hal Varian, highlights how economic data can be gathered more rapidly using online sources. Varian said that the GPI was a work in progress and Google had not yet decided whether to publish it.
EDITORS ATTACK FSA PLANS TO PLUG LEAKS
A clampdown by regulators on conversations between financial firms and the media is “misguided” and “will only injure the market integrity they purport to protect”, the editors of four top media organisations say in a letter to the Financial Services Authority. The editors wrote to Hector Sants, FSA chief executive, to protest against recommendations issued in an effort to staunch leaks to the media about deals.
LLOYDS AWAITS RULING ON ‘MISSOLD’ POLICIES
Lloyds Banking Group has confirmed that it will freeze grievances from customers who believe that they were missold PPI policies until a review sought by the British Bankers’ Association is complete. The BBA called for the inquiry last week as part of an increasingly bitter wrangle with the Financial Services Authority about standards set to come into force in December.
PRIVATE HOSPITALS UNDER OFT SCRUTINY
Britain’s private healthcare sector is under scrutiny from the Office of Fair Trading amid complaints from new players that the market is not sufficiently competitive. The regulator has conducted an initial inquiry but has not decided whether to pursue a full investigation.
The Daily Telegraph
US HOUSING MARKET FACES NEW THREAT FROM FORECLOSURE ROW
The US housing market faces a new threat from a row over how banks repossess homes. Bank of America has halted foreclosures across the country amid allegations homes are being seized on data that has not been properly checked. JPMorgan Chase and Ally Financial have also suspended foreclosures. Politicians have caled for a national suspension until the situation has been investigated
HEWLETT PACKARD TO CUT 1,300 UKJOBS
Computer giant Hewlett Packard is to cut a further 1,300 jobs in the UK and switch work overseas, unions have claimed. The cuts, which come on topof up to 900 job losses announced in June, were immediately attacked by Unite as "butchery" of the companysUK workforce.
WALL STREET JOURNAL
IRELAND'S TAXES UNDER PRESSURE
Debt-ridden Ireland is under increasing pressure to reverse the policy that helped to spur its breakneck growth: More than a decade after it slashed corporate tax rates to attract businesses, it is fielding calls to raise them again Policy makers in Europe are pressuring Ireland to bring its tax policies more in line with other EU nations, many of which have chafed at Ireland's use of low corporate taxes to woo business.
PLANS GROW FOR EUROPEAN AUDIT COP
The European Union begins consultations this week on proposals to regulate audit firms that could lead to their oversight by a pan-European market supervisor. The consultation is being launched following weaknesses that officials say were identified during the financial crisis.