Bailout frenzy for Euro Banks October 10, 2011 EUROZONE leaders scrambled to bail out another two banks yesterday after unveiling a €4bn (£3.5bn) rescue of Dexia, the bankrupt Belgian lender. The EU was also forced to postpone a summit scheduled for next Monday in order to give politicians more time to “allow [us] to finalise our comprehensive strategy” to bail out banks, Brussels [...]
Baby boomers make way for baby busters October 10, 2011 THE NEW generation of “baby busters” faces an uphill struggle to match the housing and pension wealth accrued by their “baby boomer” generation parents. “This is the legacy handed down by the early 1960s ‘baby boomers’ to the generation of students just starting at university,” according to the report published today by PwC. People born [...]
Lastminute trims losses October 10, 2011 ONLINE travel firm lastminute.com has cut its losses despite suffering a grim year caused by the volcanic ash cloud and strikes by airline crews. The private equity-owned firm increased turnover by 6.45 per cent to £49.14m and cut costs as it tackled the consumer spending slump. Operating losses narrowed 77 per cent to £10.26m, according [...]
BIS says bank buffer worth economic hit October 10, 2011 THE BENEFITS for taxpayers of a safer financial system will far outweigh the temporary hit to economic growth of imposing tough new capital rules on top banks, a committee of international regulators concluded yesterday. The report, published yesterday by the Bank for International Settlements in Basel, claimed that increasing the extra capital banks are required [...]
Dexia saved as fire sale of assets begins October 10, 2011 A FIRE SALE of Dexia assets was underway last night after France, Belgium and Luxembourg agreed to spend €90bn (£78.45bn) on a bailout for the crippled bank’s ailing bonds unit. The break-up of the group will see Dexia Bank Belgium, the largely retail division, sold to Belgium for €4bn. Dexia is also seeking backing from [...]
€60bn bailout bill heaps pressure on Belgian state October 10, 2011 THE BAILOUT of Dexia has further weakened Belgium’s chances of avoiding a downgrade of its government debt, ratings agencies warned. The central European nation has spent nearly €60bn on shoring up Dexia and buying its Belgian retail arm, just three days after Moody’s warned of a possible downgrade. After the Dexia bailout was finalised yesterday [...]
Grand rescue plan is certain to fail October 10, 2011 Markets are on tenterhooks to see how the Eurozone’s new merry-go-round of money, known as its bank recapitalisation scheme, is going to work. And following yet another delay in the unveiling of the plan – with Monday’s summit pushed back a week and few details likely until November – they will be waiting a little [...]
ECB is seeing its overnight lending soar October 10, 2011 EMERGENCY overnight lending from the European Central Bank remained in demand, while overnight deposits hit a new 15-month high, figures showed yesterday, a sign of strains in bank funding markets. Banks took €2.8bn (£2.4bn) from the 17-country bloc central bank’s expensive overnight lending facility, where they have to pay 2.25 per cent interest, compared with [...]
New call to oust Murdoch October 10, 2011 A MAJOR US investor advisory firm recommended yesterday that shareholders of the News Corporation vote against the re-election of 13 of the media conglomerate’s 15 directors, including chairman and chief executive Rupert Murdoch, who controls the company. The Institutional Shareholder Services (ISS), said the phone hacking scandal at the News of the World “laid bare [...]
Slovakia delays key decision on expanding EFSF October 10, 2011 THE FOUR parties of Slovakia’s ruling coalition ended talks on trying to solve a dispute over expanding the Eurozone’s European Financial Stability Facility (EFSF) safety net without a deal yesterday but will continue discussions from 7am this morning, the Slovakian prime minister said. Government sources said Prime Minister Iveta Radicova had threatened to resign earlier [...]
