WHAT THE OTHER PAPERS SAY THIS MORNING December 20, 2010 FINANCIAL TIMES BANKS TO OVERHAUL GLOBAL PAY STRUCTURES The world’s biggest investment banks are to overhaul their pay structures to differentiate between bankers based in Europe and those who work elsewhere, after European regulators’ clampdown on bonuses. Many US and Swiss banks are considering paying higher salaries and lower bonuses to top bankers based in [...]
US set to sue E&Y for Lehman audit December 20, 2010 NEW YORK prosecutors are said to be preparing to file a lawsuit against accountant Ernst & Young for its involvement in Lehman Brothers’ collapse in 2008. The civil case will reportedly charge Ernst & Young with helping Lehman Brothers to mislead investors during its time as the bank’s auditor, specifically homing in on the use [...]
FSA probes Swift mortgage firm December 20, 2010 MORTGAGE company Swift Advances has been under investigation by City watchdog the FSA since July 2009, the firm revealed in recent accounts. The public company said the group is likely to incur £9.4m of costs linked to the probe into its handling of mortgage arrears and lending practices, including a potential fine. The Office of [...]
Apax nears a deal to take Takko December 20, 2010 PRIVATE equity firm Apax Partners is reportedly closing in on a deal to buy German clothing retailer Takko from US rival Advent International for about €1.3bn (£1.1bn). Apax has been given until Thursday to hold exclusive talks with Takko and a deal is likely before the deadline, says the Wall Street Journal. Advent has been [...]
Delay could prove fatal for Gartmore December 20, 2010 HENDERSON is unlikely to agree an acceptable offer for Gartmore before the Christmas break, sources close to Henderson say, raising the risk that the embattled fund manager could collapse before a deal is done. Henderson confirmed yesterday it is in negotiations to snap up its stalling rival and is said to have offered 95p per [...]
Banks should have paid for protection December 20, 2010 THE BAILED-OUT banks were undercharged for the toxic asset insurance scheme used to prop them up, according to the National Audit Office. The watchdog criticised the former Treasury staff under Labour and said the department could have charged Royal Bank of Scotland (RBS) in particular up to £1.9bn more for the asset protection scheme. The [...]
Cerberus nears sale of Chrysler December 20, 2010 Toronto-Dominion Bank is close to an agreement to buy Chrysler Financial from US private equity firm Cerberus Capital Management for $6.3bn (£4.1bn), it was reported last night. Cerberus, which is led by co-founder Stephen Feinberg, would retain about $1bn in assets as part of the deal, the Wall Street Journal said. TD spokesman Wojtek Dabrowski [...]
Australia buys Gatwick stake December 20, 2010 GATWICK Airport is now partially owned by the Australian government after its Future Fund bought a 17.2 per cent stake from US investment firm Global Infrastructure Partners (GIP). GIP yesterday said the deal, thought to be worth around £150m, is part of its plan to syndicate ownership of the airport. It has previously sold holdings [...]
Bankers could trade lending for soft touch December 20, 2010 CHIEF executives of all of the UK’s major banks will be summoned to a meeting with chancellor George Osborne today, with the directors expected to try and sweeten the chancellor with offers of a multi-million pound lending target. The meeting was due to take place on Monday but was postponed due to Osborne being stranded [...]
HSBC investors questioning London HQ, Geoghegan says December 20, 2010 JPMORGAN may be moving to the Wharf to stay, but other banks are still uncertain whether London remains the ideal home. Faced with the government’s threat of further banking levies, bonus taxes and regulation, HSBC investors are reconsidering London’s appeal. Former chief executive Michael Geoghegan is the latest to warn that HSBC’s shareholders have been [...]
