Brokers open fire in High Court battle October 14, 2009 BGC PARTNERS offered well over £40m to key broking staff at fellow inter-dealer broker Tullett Prebon as part of a “carefully constructed raid”, a court heard yesterday on the opening day of a long-anticipated legal case between the two firms. Tullett, headed by City veteran Terry Smith, has accused its arch-rival of conspiring to poach [...]
Foreign banks sign up to bonus rules October 14, 2009 LONDON’S foreign investment banks yesterday signed up to an agreement to commit to guidelines on pay laid out by the Financial Services Authority and the G20 in a meeting with City minister Lord Myners. The 11 foreign banks will adopt guidelines including deferred bonuses, a higher percentage of payouts paid in shares and clawbacks to [...]
Permira plans October 14, 2009 EUROPEAN private equity firm Permira is preparing a number of companies for flotation or trade sale over the coming six to 24 months, co-managing partner Kurt Bjorklund said. Boosted by strong equity market sentiment, increasing numbers of private equity firms are eyeing exits and the prospect of returning cash to investors. However, Bjorklund told the [...]
Lloyds in rights issue setback October 14, 2009 THE government is preparing to tell Lloyds Banking Group it will not underwrite the bank’s planned rights issue, designed to help it exit the Asset Protection Scheme (APS). While the government – which owns 43.5 per cent of Lloyds – is expected to take part in the cash call, Treasury officials are understood to have [...]
Joblessness sees slowest jump in a year October 14, 2009 UNEMPLOYMENT rose in September by less than had been predicted, with the number of Britons claiming jobless benefit increasing at the slowest rate for 16 months, official data showed yesterday, raising hopes that the recent swathe of job losses may be ending. The Office for National Statistics (ONS) said that the claimant count – which [...]
City to add 9,000 jobs in 2010 October 14, 2009 The City will add new jobs next year, but it will take until 2021 for the Square Mile to hit its pre-credit crunch levels, according to a report to be released next week. London’s financial district will put on 9,000 jobs in 2010 as banks report healthy profits and equity markets rise, according to consultancy [...]
EU says UK’s finances are a serious concern October 14, 2009 BRITAIN’S deteriorating public finances pose a serious concern after billions of pounds were spent on boosting the economy, the European Commission (EC) said yesterday. Along with Ireland, Greece, Latvia, and Spain, “the possible continuing effects of the crisis on the budgetary position and on medium-term growth are a serious concern for the UK”, the EC [...]
Bigger pay rise for public sector staff October 14, 2009 STAFF in the public sector can expect to secure pay rises at twice the rate of their counterparts in the private sector, figures from the Office for National Statistics (ONS) revealed yesterday. The average public sector worker saw a pay rise of 3.2 per cent in the three months to the end of August, while [...]
City defends high bonus expectations October 14, 2009 WALL Street banks are on track to pay employees a record $140bn (£88bn) this year, and despite predictions of a public backlash,City figures say that bonuses are well-deserved. Bankers’ bonuses look set for a resurgence, after US bank JP Morgan Chase smashed analyst expectations to report third-quarter earnings of $3.59bn (£2.5bn), a 72 per cent [...]
FSA outlines new rules to vet top execs at financial firms October 14, 2009 THE Financial Services Authority wants to vet senior job candidates when top banks draw up shortlists — not after a preferred candidate has been identified — the City watchdog said yesterday. In a letter to 5,000 chief executives of financial institutions, the Financial Services Authority said it expected to be engaged early in the recruitment [...]