Angry banks hit out at Fed March 14, 2012 THE THREE US banks and an insurer that failed Federal Reserve stress tests last night signalled the start of a battle with the regulator. MetLife, the largest life insurer in the US, led the criticism after it was denied permission for a $2bn (£1.27bn) share buyback and a 49 per cent increase in its annual [...]
WHAT THE OTHER PAPERS SAY THIS MORNING March 14, 2012 FINANCIAL TIMES CAR LOANS SPEED UP AT CLOSE BROTHERS Close Brothers has reported strong growth at its banking arm in the six months to 31 January, but profits were held back by its securities and asset management divisions. Profits at the banking division have grown since the start of the financial crisis, as it expanded [...]
Dow hits a four-year high March 14, 2012 NEWS of the stress test results helped send the Dow Jones industrial average to its highest level since 2007 yesterday, with a late spark coming from JP Morgan and its dividend announcement. And the Nikkei opened above 10,000 this morning to hit a seven-month high on the back of the strong performance in US markets. [...]
Tests looked at fraud, lawsuits and meltdown March 14, 2012 THE FEDERAL Reserve’s stress test results, released two days ahead of schedule yesterday, put banks’ balance sheets through a projected financial meltdown over a two and a quarter year period. The Fed said the 19 banks taking part would lose a total of $534bn under the worst-case scenario, including loan losses, market shock as well [...]
JP Morgan sparks a US divi bonanza March 14, 2012 SHARES in JP Morgan Chase soared last night after it became the first bank to say it would boost its dividend after passing the Federal Reserve’s stress tests. The bank’s stock closed up more than seven per cent at $43.39, making it the highest riser on the Dow Jones, after it said it would raise [...]
Deutsche to cull 1,000 jobs in its investment bank March 14, 2012 DEUTSCHE Bank is plotting an overhaul of its corporate and investment bank that could see up to 1,000 jobs slashed, City A.M. has learned. The cuts, which will not affect Germany, come in addition to the 500 announced last October. That number sparked surprise at the time because it was significantly less than rivals. But [...]
EU rules loom as Prudential eyes UK exit March 14, 2012 INSURANCE giant Prudential has said its future lies in Asia, underlining fears that the firm will relocate from London to Hong Kong if tough new rules for insurers based in Europe are implemented. Speaking to reporters as he announced a seven per cent increase in worldwide operating profit to £2.07bn, chief executive Tidjane Thiam added [...]
Man from the Pru could hang up his hat March 14, 2012 THE MAN from the Pru, that great British icon, can hang up his bowler hat: Prudential is no longer a British company. Last year, for the first time, Asia contributed more to its profits than either the UK or the US. On the face of it, things are still pretty close. On an IFRS basis, [...]
EU finally gives nod to Osborne’s £20bn credit easing programme March 14, 2012 THE TREASURY is expecting imminent EU approval for its £20-40bn credit easing programme this week ahead of the budget, according to a Treasury source. The government has faced months of negotiating a torturous path between banks’ requirements and European state aid rules that impose strict parameters on stimulus programmes that target particular sectors of a [...]
Canada boost for Standard Life earnings March 14, 2012 STANDARD Life beat expectations to record a 28 per cent increase in its earnings for 2011, helped by cost cutting and a strong performance from its Canadian unit. The Edinburgh-based firm, Britain’s fifth-biggest insurer, made a pre-tax operating profit of £544m last year, up from £425m. Profits rose 70 per cent at its Canadian division [...]