No more heads to roll at UBS for key rate fiddling December 19, 2012 UBS chief executive Sergio Ermotti yesterday led the charge to rehabilitate the bank’s image, insisting major changes have already been made to make sure Libor fiddling can never happen again. The fine comes after a series of blows shaking up the bank, from rogue trader Kweku Adoboli losing £1.4bn to the bank deciding to wind [...]
What the other papers say this morning December 19, 2012 FINANCIAL TIMES Greece faces make or break year Next year will be “a make or break” year for Greece’s future as a member of the eurozone, the country’s finance minister has said, warning Europe’s leaders that Athens still faces “the possible risk” of crashing out of the currency bloc. “We can make it next year [...]
US to sell General Motors stake December 19, 2012 The US Treasury sold $5.5bn (£3.4bn) of shares in General Motors yesterday and plans to sell the rest of its stake over the coming year, all but assuring a multibillion-dollar loss following the car manufacturer’s state bailout in early 2009. At current prices the Treasury could lose more than $12bn on its $50bn investment in GM [...]
Fiscal cliff talks turn sour December 19, 2012 Talks to avoid a US fiscal crisis appeared to stall yesterday as President Barack Obama accused Republicans of digging in their heels due to a personal grudge against him, while a top Republican called the president “irrational”. Politicians have until the end of the year to avert a toxic combination of harsh tax hikes and [...]
FedEx profits fail to deliver December 19, 2012 FedEx’s profit fell 11.9 per cent in the second quarter, as the package delivery company struggled to improve results at its air freight business, it announced last night. The US-listed firm reported earnings of $438m (£269m). Disruptions relating to superstorm Sandy and falling consumer demand for pricey express postal services dented the results, though the [...]
£250,000 extra to find a castle fit for a Carney December 19, 2012 INCOMING Bank of England governor Mark Carney will receive an annual housing allowance of £250,000 to cover the cost of renting in London, it was revealed yesterday. This is on top of his salary of £480,000 and an annual payment of £144,000 in lieu of pension contributions. The total package is worth £874,000 per annum. [...]
Takeover Panel starts probe into creation of miner Bumi December 19, 2012 THE Takeover Panel has launched an investigation into the details of the reverse takeover that created coal miner Bumi, after ruling that two Indonesian shareholders were acting as concert parties. It deemed that two founder shareholders – Rosan Roeslani and the Bakrie family, which together control around 50.3 per cent of Bumi – were acting [...]
London Stock Exchange reduces LCH.Clearnet offer as costs rise December 19, 2012 THE London Stock Exchange is renegotiating its original offer for clearing house LCH.Clearnet after new European regulations increased the cost of buying the company. LCH.Clearnet, which grew out of The London Clearing House established in the City in 1888, had agreed to accept an offer from the LSE in the region of €460m (£373m), or [...]
Weak markets hit investment bank revenues December 19, 2012 REVENUES at global investment banks tumbled through 2012 on the weak equity markets, low merger and acquisition activity and falling syndicated loan incomes, according Dealogic’s annual review, published yesterday. But increased bond issuance stopped the year from being a washout, as governments continued to tap the markets heavily and companies continue to rely on the [...]
SocGen loses bonuses lawsuit December 19, 2012 Societe Generale has lost a high-profile lawsuit against a fired London-based investment banker that could cost France’s second-largest bank up to €20m (£16.3m). The UK Supreme Court ruled yesterday that Belgian banker Raphael Geys, SocGen’s former managing director of European fixed income sales in London, had been sacked without proper notice in 2007. “The bank [...]
