BofA hit by AIG’s $10bn legal action August 8, 2011 BANK of America shares fell to their lowest level since April 2009 over fears of the slowing US economy and challenges to a multi-billion dollar mortgage settlement. Although most bank shares were knocked by the market turmoil, Bank of America’s shares were worst hit after insurer American International Group (AIG) said it would sue the [...]
S&P lowers more ratings August 8, 2011 A SWATHE of US institutions were stripped of their gold-plated credit ratings by Standard & Poor’s as the fall-out from the downgrade of the US rating agency continued yesterday. As Moody’s weighed its decision to hold the US at AAA, S&P cut the two giant US mortgage agencies Freddie Mac and Fannie Mae to AA+ [...]
The end of an era for Cloud Cuckoo land economics August 7, 2011 IT came as a shock but not as a surprise. America’s downgrade is another psychologically important moment in the decline of the West: the US and much of Europe, once uncontested superpowers, are now the world’s weakest economic link. The post-Bretton Woods era is coming to an end. Asia and the emerging nations are on [...]
WHAT THE OTHER PAPERS SAY THIS MORNING August 7, 2011 FINANCIAL TIMES INVESTOR IRE SPARKS ICAP PAY REVIEW Icap, the largest interdealer broker, is to undertake a thorough review of its remuneration policy for the first time in eight years. The FTSE 100 group is making the move after a substantial minority protest vote at the annual meeting in mid-July. ONGC EYES SALE OF DEEPWATER [...]
Nightmare for Dreams as insurer pulls cover despite refinancing August 7, 2011 BED retailer Dreams has been hit with a vote of no confidence from the insurer of its suppliers, which suspended its cover of about a fifth of Dreams’ suppliers last week. Euler Hermes, which insures suppliers against their customers going bankrupt, put Dreams’ suppliers on notice that its cover would end in 30 days, leaving [...]
CITY MOVES | WHO’S SWITCHING JOBS August 7, 2011 Survitec Group The manufacturer and distributor for the marine, defence and aerospace survival technology industries that was bought by private equity firm Warburg Pincus in 2010 has appointed Paul Lester CBE as chairman. Lester, the former chief executive of VT Group and group managing director of Balfour Beatty, is currently chairman of Greenergy and non-executive [...]
Lloyds pushed into red by insurance mis-selling August 4, 2011 Compensating customers who were mis-sold insurance pushed Lloyds £3.25bn into the red in the first half but the loss was broadly as expected and the bank reiterated its full-year guidance. The banks shares fell by more than five per cent after the announcement. Excluding the £3.2bn Lloyds had already earmarked to cover mis-selling liabilities, the [...]
Barclays to axe 3,000 jobs as profit falls August 2, 2011 Barclays will cut about 3,000 jobs this year as the industry grapples with tougher regulation and the impact of a spreading sovereign debt crisis on investment banking operations. First half profits at the bank fell by a third after a drop in bond trading activity at its investment bank and a charge to compensate customers [...]
HSBC unveils surprise rise in earnings August 1, 2011 HSBC defied the equities gloom to jump 2.19 per cent yesterday after unveiling a rise in profits versus expectations of a decline. The bank saw its half-year pre-tax profit rise to $11.5bn (£7.1bn), three per cent higher than the same period last year, allowing it to boost its dividend for the period by 13 per [...]
Nedbank first half profits rise August 1, 2011 NEDBANK Group, South Africa’s fourth-largest bank, reported a 26 per cent rise in first-half profit yesterday, helped by a drop in bad debts and its push to boost revenue from fees. Nedbank, majority owned by insurer Old Mutual, was hit hard by bad debts after 2009’s recession took over 1m jobs out of the economy, [...]