Europe plans tougher rules on derivatives May 17, 2010 THE EUROPEAN Union is ratcheting up its crackdown on the City, announcing tough new rules governing derivatives traders on the eve of a crucial vote on anti-hedge fund and private equity legislation. EU Financial services commissioner Michel Barnier yesterday said he would draft legislation forcing all derivatives products and trading to be registered with trade [...]
Brussels is about to clobber the City May 16, 2010 HOW absurd. A successful British industry, one which even banker-bashers admit wasn’t responsible for the financial crisis, will this week be hammered by the European Union, marking the new government’s first foreign policy defeat and the latest blow to London’s prosperity. I’m of course referring to the EU’s attack on alternative investment managers, including hedge [...]
Swiss Re fights break-up plans May 16, 2010 Walter Kielholz, chairman of insurer Swiss Re, yesterday spoke out against the proposals of Switzerland’s “too big too fail” commission, saying it would be unwise to split up banks. Kielholz, who also sits on the board at Credit Suisse, told a paper that splitting up banks could lead foreign regulators to resort to retaliatory measures, [...]
Pru moves to rejig AIA bid May 11, 2010 AIG, the US-government owned insurance titan, is close to giving Prudential the thumbs-up to restructure the $35.5bn (£24bn) purchase of its AIA business in Asia. AIG chief executive Robert Benmosche yesterday told employees in New York the deal would go ahead despite the UK regulator’s concerns over the enlarged group’s capital strength. In March, Prudential [...]
ECB set to buy up to €1.7tr of national debt May 10, 2010 THE European Central Bank could buy up to €1.7 trillion (£1.4 trillion) of securities from troubled Eurozone countries alongside the unprecedented €750bn rescue fund unveiled yesterday. World equities soared as the ECB started buying bonds on secondary markets, lifting the pressure on Greece and Spain after weeks of hammering by speculators. The move came as [...]
Gatwick firm eyes second buyout fund May 10, 2010 GATWICK airport owner Global Infrastructure Partners is understood to be preparing to raise a second $5bn (£3.4bn) fund, braving a still-tough market for infrastructure fundraising. GIP, which also owns London City airport, is thought to have held informal discussions with existing and potential investors about its plans and will kick off fundraising in earnest in [...]
CITY MOVES | WHO’S SWITCHING JOBS May 10, 2010 Conduit Capital Markets The derivatives and securities dealer has hired ex-3i managing partner Bruce Carnegie-Brown as its new non-executive chairman. Carnegie-Brown has been working for 3i since 2007, latterly as managing partner and chairman of the financial services practice. Prior to that, he was chief executive of Marsh, and spent 18 years at JP Morgan, [...]
Pru pushes on with cash call after FSA deal May 9, 2010 PRUDENTIAL was last night on the verge of thrashing out an emergency compromise with the City regulator, clearing the way for the release of its rights issue prospectus this week. The British insurer is locked in talks with the Financial Services Authority over its capital structure after the planned $35.5bn (£24bn) acquisition of AIA in [...]
Credit Agricole is the latest to reveal its Greek debt exposure May 7, 2010 FRENCH bank Credit Agricole revealed a total £2.17bn corporate exposure to Greece today, as debt worries continued to undermine bank and insurance shares. Credit Agricole said its insurance unit had slightly less than £347m in exposure to Greek sovereign debt and its interbank risk exposure was £156m. Credit Agricole shares fell 5.3 per cent in [...]
Swiss Re gears up to repay loan to Warren Buffett May 6, 2010 SWISS Re, the world’s second-biggest reinsurer, boosted its capital by around $3bn (£2bn), giving it confidence it can repay a costly convertible loan from billionaire Warren Buffett and regain a key credit rating. A much improved investment performance also enabled the company to beat profit expectations for the first quarter, despite large natural catastrophe claims [...]