City targeted as EU grabs powers September 2, 2010 EUROPEAN diplomats agreed last night to set EU-wide financial watchdogs by the start of next year, formalising a historic power grab by Brussels institutions over key swathes of the UK and London economies. The trio of new regulators, to monitor banks, insurance companies and trading on markets, will be complemented by a group attached to [...]
Tube strike to go ahead on Monday September 2, 2010 THOUSANDS of Londers will face disruption to their travel plans this Monday and Tuesday after talks to avoid a crippling set of 24-hour strikes by London Underground (LU) workers collapsed yesterday. Over 10,000 LU workers are set to strike on Monday at 5pm, affecting the entire network and launching the rush-hour into chaos. London Underground [...]
Planting the seeds of another crisis September 2, 2010 FOR some bizarre reason, the creation of three new European Supervisory Authorities and the European Systemic Risk Board – a major power-grab for Brussels – was welcomed last night by Conservative MEPs. Vicky Ford, one of their numbers who took part in the negotiations, admitted that “this is very complex multi-layered legislation and it needs [...]
Q&A September 2, 2010 Q.WHAT IS BEING SET UP? A.Three agencies will be established to keep tabs on banks, markets and insurers next January. The new European Banking Authority will be based in London, Paris will be home to the European Securities and Markets Authority and the European Insurance and Occupational Pensions Authority will be in Frankfurt. The EU [...]
Banks rethink use of bonus to recruit talent September 2, 2010 INVESTMENT banks are moving away from offering “guaranteed” bonus packages to entice new recruits, according to a new report. Of the 37 financial institutions surveyed by the Institute of International Finance, only five per cent of bonuses handed out in 2009 were guaranteed. The figure represents a drop from 2008 when 10 per cent of [...]
WHAT THE OTHER PAPERS SAY THIS MORNING September 2, 2010 FINANCIAL TIMES LENDERS SHUNNED ON STRESS TESTS DOUBTS Leading UK and continental European companies are increasingly shunning banks from Spain, Italy and even Germany because they do not believe the Europe-wide stress testing of banks gave a true picture of their financial health. Corporate treasurers from groups with revenues of more than $240bn told the [...]
HSBC warns over UK banking exodus September 2, 2010 A LITTLE-KNOWN private equity firm stunned Wall Street by taking over troubled fast food chain Burger King in a $4bn (£2.6bn) deal yesterday. Analysts began talking about a potential wave of takeovers in the restaurant sector after 3G Capital, a New York-based vehicle run by three Brazilian billionaires, agreed a $24-per-share offer with the company’s [...]
Dell hands 3Par to HP?as walks out of bidding war September 2, 2010 DELL said yesterday it won’t match HP’s offer to pay $33 per share for 3Par, or about $2.07bn (£1.3bn) yesterday. Dell’s decision came barely an hour after 3Par announced it had received Dell’s revised offer of $32 per share and then the even stronger bid from HP. 3Par said Dell’s revised offer contained new terms [...]
Bernanke: I messed up over Lehman September 2, 2010 US Federal Reserve chairman Ben Bernanke yesterday said he was partly to blame for leaving the wrong impression that the central bank could have saved Lehman Brothers from failure in 2008. Bernanke, testifying before a congressional commission examining the causes of the worst financial crisis in 80 years, said he thought it “very likely” the [...]
New data quells fears over fresh US recession September 2, 2010 Pending sales of previously owned US homes rebounded unexpectedly in July and new claims for jobless benefits fell last week, helping dampen fears the economy could face a double dip recession. The data yesterday, including sturdy sales from US retailers last month, followed a report on Wednesday showing a surprising gain in manufacturing activity and [...]