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 [...]
Solvency II is complex and expensive, says Bank’s Tucker March 14, 2012 A TOP Bank of England official hit out at European insurance regulations yesterday, saying the new rules may overwhelm regulators and fail to cut down risks in the industry. Paul Tucker, deputy governor for financial stability, said the Bank is “dismayed by how much it is costing the industry and the regulator to adapt to [...]
Bupa posts healthy profits but boss warns of care funding crisis March 14, 2012 HEALTHCARE group Bupa yesterday announced pre-tax profits of £220m for 2011, up from £118m the year before. This was assisted by improved performance from overseas divisions, with income up 14 per cent to £3.9bn. But revenue in its traditional Europe and North American markets was down two per cent at £2.93bn. Outgoing chief executive Ray [...]
ACKERMANN UP FOR ZURICH CHAIR March 14, 2012 ZURICH Financial said yesterday it would propose outgoing Deutsche Bank chief executive Josef Ackermann as its chairman after a shareholder meeting on 29 March. The 63-year-old Swiss-born Ackermann will hand the reins of Deutsche to Anshu Jain and Juergen Fitschen during the annual shareholders meeting at the end of May. Picture: GETTY
