CITY MOVES | WHO’S SWITCHING JOBS January 30, 2011 KPMG Dr Nicola Mazzarotto (pictured) has been appointed as head of competition economics for financial advisory and accountants KPMG. The appointment means that he is now a director in the firm’s economics practice. He joins the firm from the competition commission, where he performed economic analysis for eight years on several high-profile mergers, including a [...]
Blocking out the sirens’ call: how to protect your wealth from emotion January 30, 2011 JOHN MAYNARD KEYNES once said that “there’s nothing so dangerous as the pursuit of an rational investment policy in an irrational world”. Despite that advice, every day, people try to construct rational, risk balanced portfolios. And often they fail, instead buying what is fashionable, or panicking when they should be cool-headed. According to Dr Greg Davies, [...]
Goldman’s Cohn’s warning makes hedge funds furious January 27, 2011 COMMENTS made by Goldman chief operating officer Gary Cohn in Davos this week have sparked fury among hedge fund investors, who form a large part of Goldman’s client base. Cohn sounded a warning about banking regulation on Wednesday at the World Economic Forum, saying that over-regulation could push dangerous practices into “the shadow banking system”. [...]
Geithner backs bankers on push for regulation clarity January 27, 2011 THE heads of the world’s biggest financial players met in Davos yesterday to try to mend their relationship with regulators who are crafting tougher rules to prevent another financial crisis. At a meeting on the fringes of the World Economic Forum, the bankers including the heads of JP Morgan Chase, UBS, Credit Suisse and Barclays, discussed [...]
High street sales growth in slowdown January 27, 2011 RETAIL sales for January are up on the same time last year, yet sales growth slowed considerably, according to the Confederation for British Industry (CBI). And consumer confidence has plummeted to a 12 month low, separate data from researchers GfK NOP revealed today. The positive balance of retailers reporting a year-on-year increase in sales dropped [...]
Banks hit out at calls for breakup January 26, 2011 BRITAIN’S biggest banks warned against any radical change to their structure yesterday, after the Independent Commission on Banking (ICB) published responses to its research on how best to boost competition in the banking sector. Several City stalwarts including Barclays and the Royal Bank of Scotland (RBS) claimed that banking would not be made safer by [...]
OFT won’t report banks January 26, 2011 THE OFFICE of Fair Trading has decided not to report London’s investment banking industry for anti-competitive practices, according to reports last night. The OFT has spent six months looking at whether equity underwriting practices stifle competition, but does not have enough evidence to make a formal referral to the Competition Commission. The watchdog said in [...]
Submissions to Vickers January 26, 2011 BARCLAYS Said a forced split would harm the stability of the system. “There is little empirical evidence to suggest that material structural change would enhance financial stability,” it said, warning that the UK economy would also suffer if the financial sector is curtailed. RBS RBS sought to quantify the benefits of the universal model, estimating [...]
Agius warns EU rules could hurt recovery January 26, 2011 MARCUS Agius, the chairman of the British Bankers’ Association and Barclays, has warned the government that regulators could hinder the recovery by adopting new banking rules more quickly than other countries. In a letter to chancellor George Osborne, Agius argued the UK risks tipping the playing field of global commerce in favour of rival financial centres. He [...]
Analysts say Glencore could be worth $60bn January 26, 2011 GLENCORE, the world’s biggest commodities trader, has enjoyed a surge in value and is now worth some $60bn (£38bn) as it contemplates an initial public offering (IPO), according to leading team of mining analysts. That value placed on it by Liberum Capital would place it among the 15 biggest FTSE-listed companies if it were to [...]