WHAT THE OTHER PAPERS SAY THIS MORNING June 13, 2012 FINANCIAL TIMES Banks bow to EU bonus limit Bankers’ bonuses across the European Union are set to be limited by law, with many bank lobbyists admitting in private that they have lost the fight against a European Parliament initiative to limit the size of bonuses relative to salary. Some banks still hope to increase the [...]
Man United drops Asia IPO for US June 13, 2012 Manchester United, the world’s best-supported football club, has ditched its plans for an Asian stock market flotation and is preparing to list in the United States, according to sources with knowledge of the deal. After first eyeing a Hong Kong IPO, the Premier League runners up, owned by the Glazer family, had planned a $1bn [...]
Blankfein: Goldman is job for life June 13, 2012 The chief executive and chairman of Goldman Sachs said yesterday he has no plans to relinquish his duties running the bank. Speaking to reporters after a breakfast appearance in Chicago, Lloyd Blankfein quipped: “I’m 57. What am I going to do with the other 60 years of my life?” Blankfein said five of his predecessors [...]
Auditor backs HMRC tax deals with Goldman June 13, 2012 BRITAIN’S top tax officials were justified in making secret deals worth billions of pounds with major five major corporates, a report says today. HM Revenue & Customs achieved a “good” outcome for the public purse by resolving a series of long-running disputes with the five unnamed firms but was criticised for bypassing proper governance procedures over the [...]
Jamie Dimon blames $2bn loss on management chain failure June 13, 2012 JPMORGAN Chase chief executive Jamie Dimon used his much anticipated appearance before lawmakers to apologise for the bank’s multi-billion dollar trading loss but made clear he will still criticise how Washington tries to curb Wall Street. The Senate Banking Committee scheduled the hearing to grill Dimon on how a hedging strategy in a seemingly low-risk [...]
Coalition claims that it is still committed to High Speed Two June 13, 2012 THE GOVERNMENT was last night struggling to reaffirm its commitment to the controversial High Speed Two (HS2) railway project following a claim that it has been “quietly dropped”. An anonymous Conservative minister quoted in today’s edition of The Spectator is reported to have said: “The project is effectively dead. The only thing keeping it on life [...]
Both Spain and Cyprus see their ratings slashed June 13, 2012 STRUGGLING Eurozone members Spain and Cyprus both saw their credit ratings slashed last night as Moody’s warned that they had been effectively shut out of international markets. Spain’s government bond rating was cut to just one notch above junk status – to Baa3 from A3 – with Moody’s saying its banking bailout would take years [...]
Where did this €698bn exposure come from? June 13, 2012 Q How did this exposure arise? A When money is transferred from a bank in Greece to a bank in Germany through the Target2 payments system, the Bundesbank creates the money in the account. It is owed that amount by the European Central Bank until such time as it can be retrieved from Greece’s central [...]
German central bank exposed to Greek exit June 13, 2012 BUNDESBANK claims on the Eurosystem soared in the past six months as investors pulled cash out of weak economies and poured it into Germany, new data has revealed, leaving the central bank – and so German taxpayers – heavily exposed to the weaker economies. The German central bank’s exposure to the Target2 payments system stood [...]
MPs beg Monti to spend more as yields soar June 13, 2012 ITALY’S borrowing costs jumped again yesterday as the sovereign debt crisis continued, while official data showed industrial output plunging across the Eurozone, underlining the crippling impact on the real economy. Prime Minister Mario Monti came under pressure from MPs who demanded he slow down his austerity programme, asking him to borrow more in an effort [...]
