Knight Capital hit by losses August 7, 2013 KCG HOLDINGS, the US company formed by the merger of algorithmic traders Knight Holdings and Getco, last night slumped to heavy losses due to merger costs. Knight, previously a top Wall Street company, was a high frequency trader that came close to collapse after an algorithm misfired in August 2012, leaving the company with a massive bill. [...]
Groupon offers buyback deal August 7, 2013 GROUPON, which specialises in a time-limited discounts on local services, last night announced that it would commence a $300m (£193m) share buyback programme as it struggles to reposition itself in the marketplace. It also appointed interim chief executive Eric Lefkofsky on a permanent basis after some success in refocusing its efforts on mobile sales. The firm’s [...]
JP Morgan in lending probe August 7, 2013 JP MORGAN Chase, the biggest US bank by assets, said yesterday it is being investigated by civil and criminal divisions of the US Department of Justice over offerings of mortgage-backed securities. The civil division gave the company a notice in May that it had preliminarily concluded that the firm violated federal securities laws in offerings [...]
AOL makes a play for television platform August 7, 2013 AOL yesterday revealed plans to buy Adap.tv, an electronic trading platform that helps companies advertise on video websites, for $405m in its biggest acquisition under chief executive Tim Armstrong. AOL, which is trying to rely less on its dial-up subscription service, also reported higher-than-expected revenue of $541.3m for the second quarter.
ING’s earnings beat forecasts August 7, 2013 DUTCH financial group ING yesterday beat second-quarter profit forecasts at its banking business and said it could announce more cost savings later this year as it continues to slim down in a drive to recover from the financial crisis. ING posted a 39 per cent drop in second-quarter net profit to €788m, hit by a [...]
Dexia narrows half-year loss August 7, 2013 NATIONALISED Franco-Belgian financial group Dexia yesterday posted a smaller net loss in the first half of 2013 than in the same period last year as its funding costs dipped. Dexia, about 95 per cent owned by France and Belgium, said it made a net loss of €905m (£779.2m) in the first half of 2013, against [...]
African promise for Old Mutual as profits rise August 7, 2013 LONDON-based insurer Old Mutual yesterday said its decision to expand in emerging African markets is paying off as it announced strong first half results. The company, which relies heavily on sales in its South African homeland, has looked to expand across the continent during 2013, buying businesses in Nigeria, Kenya and Ghana. “Sub-Saharan Africa as [...]
Inside Track: Lord Davies still in the running for both RBS and Lloyds August 7, 2013 LORD Davies, the former trade minister and one of the City’s most distinguished bankers, is not a man who gives up easily. So it must have been galling that the share price of Lloyds Banking Group has put on a gallop in recent weeks, faster than the famous black stallion that adorns its logo. Project [...]
Second probe for Grant Thornton August 7, 2013 The accounting watchdog has launched its second investigation in as many days into Grant Thornton. The Financial Reporting Council (FRC) said it was investigating how Grant Thornton audited and accounted for interest rate swap arrangements in Manchester Building Society’s accounts, prompting a financial adjustment last year. The FRC on Tuesday announced an investigation into the [...]
Sherborne rakes in earnings August 7, 2013 Sherborne Investors, the fund vehicle led by activist investor Ed Bramson, yesterday reported gains of £33.9m for the seven months ending in June. The fund, which was raised by Bramson to take over listed private equity company 3i, made £18.8m of this from selling shares in 3i and terminating derivative contracts. Bramson’s vehicle is now [...]