Behind bars October 24, 2012 PROSECUTORS yesterday claimed two high-profile scalps in their crackdown on financial services crime, as two former bankers were sent to jail and issued with substantial fines. Rajat Gupta, the former Goldman Sachs director and ex- McKinsey boss whose fall from grace has captivated Wall Street, was sentenced to two years in prison and a $5m [...]
Cameron hints at end to recession October 24, 2012 DAVID Cameron yesterday told the House of Commons that more “good news” is on the way, leading to speculation that today’s third-quarter growth figures will show Britain has exited recession. During a row with Labour leader Ed Miliband at Prime Minister’s Questions, Cameron boasted of recent falls in unemployment and inflation before declaring “the good [...]
Coalition must not become complacent on economic growth October 24, 2012 UNLIKE some commentators, I don’t think David Cameron did anything especially wrong yesterday. He hinted at Prime Minister’s Question Time that the economy was improving; he didn’t leak the GDP figures. The statistics will be published this morning; so there is little point speculating about them. But it is worth noting that when the Prime [...]
Tougher income checks if you want a mortgage October 24, 2012 INTEREST ONLY mortgages will not be banned under new proposals published by the regulator today, but banks will have to be more careful to ensure borrowers can pay back the loans. The richest borrowers will not need to go through extensive affordability checks under the new mortgage market review (MMR), while small changes to contracts [...]
What the other papers say this morning October 24, 2012 FINANCIAL TIMES Walker plans Barclays clear-out Sir David Walker is planning a clean sweep of Barclays’ board after he formally becomes chairman of the scandal-tainted bank next week and will also oversee the replacement of some executive positions. The City grandee has been sounding out top figures over their suitability to join the bank in [...]
The new loan rules October 24, 2012 ■ All borrowers will have to satisfy lenders they can afford the mortgage and provide evidence of their income ■ High loan-to-value mortgages will still be allowed as long as the borrower shows they have a credible repayment strategy ■ The same tests will apply to interest-only mortgages – a lighter regulation than the complete [...]
Dyson claims Bosch paid research mole October 24, 2012 BRITISH engineering firm Dyson yesterday accused German rival Bosch of employing a mole in its high-security research department, with the aim of illegally acquiring technology. The UK company filed proceedings at the High Court, claiming that secrets surrounding the development of motors at its Wiltshire innovation centre were passed to Bosch for up to two [...]
Federal Prosecutors sue BoA for $1bn in mortgage fraud lawsuit October 24, 2012 BANK of America defrauded the US government in a scheme called “the Hustle”, US federal prosecutors, which are seeking $1bn (£624m) in compensation, alleged yesterday. In the civil lawsuit Countrywide Financial, which Bank of America bought in 2008, is accused of selling thousands of toxic home loans to US government agencies Fannie Mae and Freddie [...]
Greenback eases after Federal Reserve sticks with stimulus October 24, 2012 THE DOLLAR drifted off a two-week peak against a basket of major currencies last night after the Federal Reserve stuck to its stimulus programme known as QE3. Following a two-day meeting, the Fed repeated its vow to maintain rates near zero until mid-2015 and to support growth even as some parts of the economy looked [...]
Zynga fights to keep hold of Facebook fans October 24, 2012 THE COMPANY behind Facebook games such as Farmville last night announced a share buyback plan and provided more details about an ambitious turnaround programme that may go some way towards placating furious investors. Zynga beat analysts’ low expectations to announce a small increase in revenue to $317m (£198m) for the third quarter, producing a net [...]
