Catastrophes cost economy £232bn in 2011 March 28, 2012 A YEAR of natural catastrophes and man–made disasters cost the worldwide economy over $370bn (£232bn) in 2011, according to new research from the insurer Swiss Re. It estimates that insurers will have to cover $116bn of this cost, up from their December forecast of $108bn. Japan’s earthquake, which caused over 19,000 deaths, accounted for more [...]
PPI sales chaos triggers a spike in complaints March 28, 2012 A SURGE in public anger over payment protection insurance (PPI) has helped push up complaints about financial institutions more than a fifth to 2.26m. Complaints about the controversial method of cover jumped 85 per cent to nearly 980,000 in the second half of last year, according to the Financial Services Authority. The total paid out [...]
Co-op granted licence to sell legal services March 28, 2012 CO-OPERATIVE Legal Services has become the first alternative business structure (ABS) to launch in the UK after being officially approved by regulators, along with a pair of regional solicitors’ firms. The Solicitors Regulation Authority (SRA) said yesterday it had licensed the Co-operative Group subsidiary, Oxford-based John Welch and Stammers, and Lawbridge Solicitors in Kent as [...]
ONS: UK output fell even faster than expected March 28, 2012 ECONOMIC output fell more quickly towards the end of last year than first thought, official estimates showed yesterday. GDP contracted by 0.3 per cent in the final quarter of last year, the Office for National Statistics (ONS) said, not the 0.2 per cent previously reported. The decline represents a sharp turnaround from the 0.6 per [...]
FPC aims to cut high risk mortgage loans March 28, 2012 BANK of England officials want the power to control mortgage lending levels by forcing banks to hold more capital against risky high loan-to-value (LTV) borrowing – but does not want an explicit cap on LTV levels because it fears a public backlash. Raising the capital banks must hold against high LTV mortgages may be “desirable” [...]
Goldman gives some leeway in board fight March 28, 2012 GOLDMAN Sachs has made some concessions to unions over its board structure, but has stopped short of splitting Lloyd Blankfein’s chairman and chief executive roles for now. Top execs at the American bank have talked about dividing up Blankfein’s responsibilities in response to corporate governance concerns, but yesterday only went as far as introducing a [...]
The UK’s oldest tour operator is still stuck in the past March 28, 2012 DISASTER has been averted. Just a few months ago, many thought that Thomas Cook was not long for this world. After yesterday’s update, it is clear the firm will live to fight another day. The imminent sale of its Indian business, which is expected to net £130m, along with a stabilisation in trading, means its debt repayments [...]
Logistics firms fined €169m in Europe for cartel activities March 28, 2012 THIRTEEN logistics firms, including UPS, Panalpina and Expeditors , were fined a total of €169m (£141.6m) by the European Commission yesterday for cartel activities. The European Commission said the companies fixed prices in the air freight forwarding business in four cartels between 2002 and 2007, identifying themselves in their secret talks with code names such [...]
Bank of America’s Moynihan total pay for 2011 hits $8.1m March 28, 2012 BANK of America chief executive officer Brian Moynihan made $8.1m (£5.1m) in total compensation last year, more than four times the $1.9m he received in 2010, according to a filing with the US Securities and Exchange Commission yesterday. The news came as it emerged that Moynihan was compiling an international advisory board in a bid [...]
Icap’s relief as clients taste for trades returns March 28, 2012 BROKER Icap said clients have rediscovered their appetite for risk amid the spring rally in equity markets. The world’s largest interdealer broker, run by Conservative donor and Downing Street guest Michael Spencer, said profit for the year ending 31 March would be at the upper end of analysts’ expectations of £336m to £358m. The figures [...]