CITY BANKERS CHEER AS BONUSES RETURN July 2, 2009 THE CITY is set for a return to the champagne-soaked days of old, after it emerged yesterday that bankers at Goldman Sachs and Morgan Stanley are on track for bumper full-year bonuses to rival those from the pre-credit crunch compensation heyday. Goldman Sachs is on course to pay out up to $700,000 (£427,000) per employee [...]
Freshfields is City’s top legal firm July 2, 2009 FRESHFIELDS Bruckhaus Deringer has overtaken rival Clifford Chance to clinch the top spot among the UK’s highest-grossing law firms. Profit per equity partner – considered the best measure of a law firm’s profitability – remained broadly constant for the 2008/09 financial year at £1.44m, outperforming rivals who saw profits slump. Revenue hit £1.29bn, an increase [...]
FSA revamps its structure July 2, 2009 THE FINANCIAL Services Authority said yesterday it had completed reforms of its operational structure designed to help it identify risks in the financial sector. The FSA, which has been criticised for failing to spot the signs of the banking crisis, has created a new international division, led by director Verena Ross, which it said would [...]
Bonuses done right are an essential tool July 2, 2009 SO bonuses are back. This is great news for many readers of this newspaper, the majority of whom work in financial services; but many others will find this return of the mega-payout to be entirely offensive. After all, the “bonus culture” – when huge financial rewards are meted out, regardless of real, long-term performance – [...]
Osborne in expenses probe July 2, 2009 SHADOW chancellor George Osborne is facing an expenses probe by the Parliamentary Standards Commissioner following a complaint by the Labour Party chairman for his constituency. Laurie Burton, Labour chair in Osborne’s Tatton constituency, alleges that between 2001 and 2003, Osborne claimed a second home allowance on his main home, a practice known as “flipping”. Burton [...]
WHAT THE OTHER PAPERS SAY THIS MORNING July 2, 2009 FINANCIAL TIMES M&B SEEKS TO FEND OFF INVESTOR REBELLIONMitchells & Butlers is prepared to head off a potential rebellion by offering its two largest shareholders board representation. Drummond Hall, M&B chairman, is understood to be in talks with Joe Lewis, the Bahamas-based billionaire, and Elpida, the investment vehicle for Irish horseracing tycoons JP McManus and [...]
New rules for US bank buyouts July 2, 2009 Private equity houses hoping to invest in troubled banks will be governed by strict rules under new guidelines proposed by US bank regulators yesterday. Private equity firms will have to maintain higher-than-usual capital levels and provide assurances that a healthier institution could provide support for the weaker bank if it runs into difficulty.
Swine flu to hit 100,000 a day July 2, 2009 Swine flu cases could reach more than 100,000 a day in the UK by the end of August, health secretary Andy Burnham warned yesterday. Burnham said the country had moved beyond containment and had now entered the “treatment” phase of the H1N1 virus.
F&C enters acquisition arena July 2, 2009 F&C Asset Management will today become an independent listed fund manager, as Friends Provident doles out its 52 per cent stake to shareholders. The fund manager will now join fellow acquisition-hungry listed funds such as Henderson and Aberdeen, which was itself linked with a bid for F&C earlier in the year.
Pre-nup ruling will shake up divorce law July 2, 2009 THE DAYS of lucrative divorce settlements in the UK could be drawing to a close, after a London appeal court ruled yesterday that a pre-nuptial agreement between a wealthy German heiress and her husband was legally binding. Lord Justice Mathew Thorpe handed down a landmark ruling which determined that a contract between heiress Katrin Radmacher [...]