AIG’s Liddy steps down after bailout May 21, 2009 EDWARD Liddy, the chief executive and chairman of AIG, is to step down from the insurer as soon as a replacement is found, it emerged last night. Liddy, who earlier this year called on AIG staff to give back at least half of their bonuses, said the company’s return to financial health would “take several [...]
New Lloyds cuts anger union May 21, 2009 Unions reacted angrily yesterday after Lloyds Banking Group said it plans to axe 210 UK-based jobs by the end of next year, as it merges the telephone and digital banking services of Lloyds TSB and HBOS. The news came just two days after the bank announced that 625 jobs would be lost as a result [...]
Sandy Crombie joins RBS board May 21, 2009 Sir Sandy Crombie, the chief executive of Standard Life, is to join the board of Royal Bank of Scotland. Crombie will become the bank’s senior independent director and will be responsible for liaising between the bank and leading investors. UKFI – the body which manages the government’s stakes in recapitalised banks – is believed to [...]
Greenspan issues bank warning May 21, 2009 Alan Greenspan, the former chairman of the Federal Reserve, warned yesterday that US banks may have to raise significant amounts of money before the economy can recover. “There is still a very large unfunded capital requirement in the commercial banking system in the United States,” he said. Greenspan, who has been blamed by some for [...]
City police swoop in 50m fraud probe May 21, 2009 TWO men have been arrested in connection with an alleged £50m fraud affecting up to 600 investors, after City of London Police raided addresses in London and Surrey yesterday. The investigation relates to three financial consultancies, Business Consulting International (BCI), John Anderson Consulting and Kenneth Peacock Consulting, all of which had their activities suspended by [...]
No green shoots but recovery is on the way, says Bean May 21, 2009 BRITISH firms can expect continued difficulty in obtaining funding, but should be optimistic about the prospects for economic recovery, the Bank of England’s deputy governor Charles Bean said last night. In a speech to steel industry figures in Sheffield, Bean said there were encouraging signs that business confidence was returning but said he would “hesitate [...]
International accounting rule setter speeds up reform of fair value system May 21, 2009 A TOP international accounting standards setter yesterday agreed to speed up the revision of a rule criticised by European Union (EU) finance ministers for amplifying fallout from the credit crunch. The International Accounting Standards Board ( IASB ), which sets financial reporting rules used in more than 100 countries around the globe, including the EU [...]
GEITHNER MULLS NEW CONSUMER AGENCY May 21, 2009 US TREASURY secretary Timothy Geithner yesterday told a congressional hearing that the Obama administration is mulling a new agency to better protect consumers who buy financial products or take out mortgages from practices like those that led to the current financial crisis.
London is a seller’s market May 21, 2009 Estate agency Cluttons yesterday said that the drastic shortage of property for sale in Central London has created a seller’s market, with fierce competition among buyers and an increase in sealed bids for properties that are for sale. The agency said that, at the end of last year, buyers were rare but now buyers have [...]
Boeing says 787 is on track May 21, 2009 Aircraft manufacturer Boeing said yesterday that its Dreamliner 787 was still on track for its first flight later this quarter, and said it is on the lookout to buy defence firms. The American company stood by a previous full-year forecast, but said that deliveries of new planes, including the 787, set to begin next year [...]