CIT cuts $3bn salvation deal July 19, 2009 US lending giant CIT Group last night cut an eleventh-hour deal with its key bondholders for $3bn(£1.8bn) in financing that will save the 101-year-old from the jaws of bankruptcy. CIT, which suffered a liquidity crunch and is straining under its multi-billion dollar debt load, now aims to restructure outside of court. The firm, which lends [...]
More clarity needed on Tarp July 19, 2009 Treasury Secretary Timothy Geithner should put more pressure on US banks to reveal how they intend to use over $200bn (£122.5bn) which the government has ploughed into them, according to a new report by Neil Barofsky, special inspector general of the Troubled Asset Relief Program (Tarp). The report, to be published today, will say that [...]
Zuma installs new central banker July 19, 2009 South Africa’s president Jacob Zuma has appointed Gill Marcus as the new governor of the country’s central bank. Marcus, a former deputy governor, will take over from Tito Mboweni after he asked to be allowed to step down from his five-year term early. Marcus, who served as deputy governor of the South African Reserve Bank [...]
Johnson hints at April election July 19, 2009 Health secretary Alan Johnson has inadvertently hinted that Labour is expecting to fight an election campaign in April 2010. Responding to polls putting the Conservatives well ahead of Labour, Johnson said his party was still in the running “eight months before a general election”. Such a timetable would suggest that Labour is planning a 6 [...]
HRE could need more cash July 19, 2009 Hypo Real Estate (HRE) is likely to need more new equity than originally expected, its chairman has said. “It would not surprise me if a €10bn (£8.6bn) capital did not suffice for HRE,” Michael Endres said. Germany’s highest-profile casualty of the financial crisis has been propped up with more than €100bn in capital and guarantees, [...]
Banks back to winning ways July 19, 2009 MORGAN Stanley and Credit Suisse will continue the resurgence of fortunes among the world’s biggest banks this week, when they report second quarter results expected to show a gradual recovery. Wall Street giant Morgan Stanley, which reports on Wednesday, is forecast to show a slight improvement from the first quarter, cutting losses from $0.57 (£0.35) [...]
Ashley hits back at Jones’ loan claims July 19, 2009 The bitter row between Sports Direct’s Mike Ashley and JJB Sport’s executive chairman Sir David Jones intensified yesterday after Ashley released a contract showing that the £1.5m personal loan was paid after Jones joined JJB’s board, contradicting a former statement by the group. The loan agreement, a copy of which has been seen by City [...]
London retail sales outpace UK thanks to sunshine and tourists July 19, 2009 RETAIL sales surged in central London last month thanks to the mini heatwave which sent shoppers racing for summer clothes, sandals and outdoor items, according to the latest survey from the British Retail Consortium (BRC) and KPMG. Research found like-for-like sales in June were 4.7 per cent higher than the same month in 2008 when [...]
Economy will be in growth again in 2010 July 19, 2009 BRITAIN’S economy faces its stiffest test since the end of the Second World War with UK GDP expected to contract by 4.5 per cent in 2009 – the largest annual decline since 1945. According to the summer forecast from the respected Ernst & Young Item Club, due for release today, growth will return in 2010, [...]
Police uncover 80m City Ponzi fraud with 600 victims falling prey to scam July 19, 2009 CITY of London Police have uncovered an £80m “Ponzi” scheme that has more than 600 victims, with some now said to be bankrupt, homeless or suicidal as a result. The City police held a meeting for the victims last week at its Wood Street headquarters, after many refused to believe their investments in the scheme [...]
