Fresh scandal to cost banks £2bn January 31, 2013 THE FINANCE watchdog yesterday opened the floodgates to tens of thousands of compensation claims from small firms who may have been missold interest-rate fixing products, representing another major headache for the scandal-struck industry. The four biggest banks will now review the 40,000 interest rate swap transactions made since 2001 in a bid to identify any [...]
What the other papers say this morning January 31, 2013 FINANCIAL TIMES Barclays in Qatar loan probe UK authorities are probing an allegation that Barclays loaned Qatar money to invest in the bank as part of its cash call at the height of the financial crisis in 2008, which enabled the bank to avoid a UK government bailout. Neither Sheikh Hamad bin Jassim bin Jabr [...]
Dealmakers already confident of better times ahead January 31, 2013 With the first month of the year out of the way, most investment bankers are beginning to feel a little bit chirpier – at least those of them lucky enough still to be in a job. In Europe, January has brought a few large deals to the markets, including ArcelorMittal’s $3.5bn (£2.21bn) mandatory convertible bond [...]
FTSE 100 hurt by AstraZeneca and banking shares January 31, 2013 The leading share index fell back this morning beneath the 6,300 level that it hit yesterday, as AstraZeneca and banking shares weighed on the FTSE 100. The pharmaceutical firm dropped more than four per cent in early deals, as it posted a drop in fourth quarter profit. “As largely expected, investors will have to wait [...]
Banks to review sale of interest rate swaps to small businesses January 31, 2013 The big four banks will start a review into the sale of complex interest rate hedging products that might have been mis-sold to small businesses. The Financial Services Authority, which last said it had found serious failings in the sale of interest rate hedging products (IRHPs), said Barclays, Lloyds, HSBC and RBS would review individual [...]
Ex-Barclays pay boss attacks Diamond’s reward for failure January 30, 2013 FORMER Barclays chief executive Bob Diamond did not deserve a bonus in 2011 because the bank gave poor returns for shareholders, former director and remuneration committee head Alison Carnwath said yesterday. The ex-non-executive said she worked to pull down investment bank bonuses by 30 per cent, but could not rein in Diamond who, she said, [...]
FTSE 100 rally continues January 30, 2013 The FTSE 100 rally showed signs of continuing this morning, as the blue chip index edged up 0.1 per cent, despite a slew of weak trading statements from large-cap companies. Oil and gas services firm Petrofac topped the blue chip loser board, shedding more than seven per cent. Other large-cap fallers dropped on the back [...]
Bank bonuses chopped back after year of scandal January 29, 2013 BARCLAYS and RBS are expected to slash bonus payouts in the coming months after a series of scandals hit the industry. The deepening payment protection insurance crisis has hit both banks to the tune of several billion pounds and shows no sign of ending, while Barclays was hit by a £290m Libor fine last year. [...]
City Moves for 30 January 2013 | Who’s switching jobs January 29, 2013 Pinsent Masons Michael Isaacs has been appointed partner in the law firm’s financial sector disputes practice. He is a banking litigation specialist, and joins from Addleshaw Goddard. Issacs has over 20 years’ experience in the sector. Mizuho International The London-based securities and investment banking arm of Mizuho Financial Group has appointed Antony Slotboom as head [...]
Fed is ahead in the battle of the central banks January 29, 2013 ALTHOUGH the US has shown signs of rebounding, a scratch beneath the surface reveals that there are still issues dragging on the world’s largest economy. By historical standards, the pace of its current recovery is feeble. Research from Bank of America Merrill Lynch points out that the average annual growth rate of this recovery is [...]