Citi pays out $285m fine October 20, 2011 CITIGROUP settled with the US Securities and Exchange Commission (SEC) for $285m last night over a case involving derivatives sold before the financial crisis, saying it was “pleased to put this matter behind us”. The SEC had accused Citi of negligence when it advertised certain derivatives to customers without disclosing that it had helped to [...]
EU unveils trading rules October 20, 2011 THE European Commission is set to announce an overhaul of trading platforms and penalties for financial crime this morning as its head, Michel Barnier, unveils two new hefty tomes of regulation. The Market in Financial Instruments Directive II (MiFID II) will target commodities derivatives trading by handing national and EU regulators new powers to slap [...]
WHAT THE OTHER PAPERS SAY THIS MORNING October 20, 2011 FINANCIAL TIMES EU PUTS BANKS’ SHORTFALL AT JUST €90BN Europe’s grand plan to strengthen its banking system is set to fall well short of current market expectations identifying a capital shortfall of less than €100bn (£87bn) that must be made up over the next six to nine months, according to the latest official estimates. The EU’s [...]
Cable can’t rule out double dip October 20, 2011 Business Secretary Vince Cable said yesterday that Britain’s faltering economy could slip back into recession, but government action to boost growth is likely to help the country avoid another downturn. During an interview with ITV news, Cable was asked if he could promise that Britain would not experience a double-dip recession. He said: “I can’t [...]
Vote on EU referendum moved October 20, 2011 Downing Street yesterday brought forward a House of Commons vote on whether a referendum on Britain’s membership of the EU should be held, as fears grow that some Tory MPs were planning a rebellion in Prime Minister David Cameron’s absence. The debate was originally scheduled for next Thursday, 27 October, but will now take place [...]
EBay outlook cautious as revenues rise October 20, 2011 EBAY reported profit that matched Wall Street estimates yesterday, but gave a restrained outlook for the rest of the year, sending its shares lower. Excluding stock-based compensation expenses and other items, the operator of the largest online marketplace reported profit of $628.2m (£398m), or 48 cents a share, in the latest period. Revenue climbed 32 [...]
Key tax ruling may hit UK non-doms October 20, 2011 INTERNATIONAL entrepreneur Robert Gaines-Cooper lost his UK residency appeal in the Supreme Court yesterday, in a case that could have repercussions for other non-domiciles facing back-dated tax bills. The court ruled in favour of HMRC that the millionaire must pay tax under UK law, despite having lived in the Seychelles since 1976. Commentators said the judgement [...]
Santander is downgraded October 20, 2011 MOODY’S downgraded five of Spain’s biggest lenders last night, including Banco Santander, following on from its downgrade of the sovereign state on Tuesday night. The other banks downgraded were BBVA, CaixaBank, La Caixa and Confederación Espanola de Cajas de Ahorros (CECA). The agency limited its actions to Spain’s biggest, systemically important banks because it said they [...]
AmEx profit up on record spend October 20, 2011 AMERICAN Express posted higher-than-expected quarterly net income on yesterday, as borrowers used their cards for more purchases. The New York-based credit card company said third-quarter net income was $1.2bn, or $1.03 per share — up from $1.1bn, or 90 cents per share, a year ago. That was above analysts’ average estimate of earnings of 96 [...]
Economic fears stalling US recovery: Beige Book October 20, 2011 THE US economic outlook grew dimmer in September, leading businesses to be wary of spending and of building up inventories ahead of the holiday sales season, the Federal Reserve’s Beige Book revealed last night. US stocks fell after the Beige Book was released, while Treasury debt prices rose on its glum economic outlook. In more positive [...]
