WHAT THE OTHER PAPERS SAY THIS MORNING May 21, 2012 FINANCIAL TIMES SFO lawyer warned against pursuing Tchenguiz case The lead lawyer in the Serious Fraud Office’s investigation of the Tchenguiz brothers warned the agency two months before the property tycoons’ arrest that it should not pursue the case. In January 2011, Wayil Eisa, the lawyer tasked with drafting the case for the prosecution, submitted [...]
Barclays to sell £3.8bn stake in BlackRock May 21, 2012 BARCLAYS has decided to sell its $6.1bn (£3.8bn) stake in investment manager BlackRock because new regulatory requirements mean the asset cannot generate a decent return. BlackRock itself has agreed to buy back $1bn of the stock, which Barclays acquired in 2009 in part-payment for its sale of Barclays Global Investors to BlackRock. The bank has now [...]
JP Morgan calls halt to $15bn share buyback to focus on Basel May 21, 2012 JP MORGAN has called a halt to its $15bn (£9.5bn) share buyback programme following $2bn in trading losses. The bank said it wants to instead prioritise getting its capital up to the levels required by the Basel III rules. Chief executive Jamie Dimon told an investor conference yesterday that the bank wants to “box this [...]
EU gives Google time to comply May 21, 2012 THE EU’s antitrust chief has given Google a matter of weeks to come up with solutions after a probe found four areas where its practices “may be considered” as abuse of its dominant position. EU Competition commissioner Joaquin Almunia wrote to Google chairman Eric Schmidt following an 18-month probe after competitors accused Google of manipulating [...]
Thomas Cook sells India arm May 21, 2012 THOMAS COOK confirmed last night it has agreed to sell its Indian arm to Toronto-based Fairbridge Capital for 8.2bn rupees (£94m). Fairbridge, part of India-born billionaire Prem Watsa’s Fairfax Financial, will pay 50 rupees per share for its 77.1 per cent stake in Thomas Cook India. The travel firm, which is seeking to pay down [...]
Central bankers fear lost chance to rescue euro May 21, 2012 CENTRAL bankers from across Europe banded together yesterday to urge Eurozone governments to seize the opportunity given by the ECB to reform their economies, while they still have the chance. European Central Bank (ECB) board member Joerg Asmussen said that growth is vital to ending the sovereign debt crisis, but that economic reforms, rather than [...]
IIF says Spain will need €60bn to prop up the banking system May 21, 2012 SPANISH bank losses on bad loans could be as high as €260bn (£210.5bn), the International Institute of Finance (IIF) said yesterday, with up to €60bn needed to shore up the troubled country’s banking system. The IIF used figures based on the hit that Irish banks took in the financial crisis to make its predictions, with [...]
Investors keep pressure on weak governments’ borrowing May 21, 2012 SPAIN saw government borrowing costs edge up and its stocks slip further again yesterday, as uncertainty over the future of the Eurozone and the stability of the country’s banking sector continued to unnerve investors. Yields on 10-year Spanish bonds rose sharply from 6.266 per cent to 6.322 before dropping back to 6.276 per cent at [...]
EU details plan to clamp down on rating firms May 21, 2012 EUROPEAN Union countries agreed yesterday to press for new controls on credit ratings agencies, with a law to challenge the power of the debt raters whose downgrades of countries angered politicians as they struggle with an economic crisis. The draft rules, which will turn into EU law after the completion of negotiations with the European [...]
Back on the agenda: eurobonds May 21, 2012 Q What are eurobonds? A It depends on whom you ask. At their most basic level, “euro bonds” are a way of using Germany’s fiscal credibility to underwrite the huge debt piles of more profligate countries. In other words, they are effectively a way of transferring German wealth to other countries. Q How do they [...]
