Three-way clash among MPC over QE November 18, 2009 TENSIONS on the Bank of England’s monetary policy committee (MPC) came to a head in November as members clashed in a three-way split over the way forward for its quantitative easing (QE) policy, the minutes of its last meeting showed yesterday. The committee voted unanimously to keep interest rates on hold at 0.5 per cent [...]
Aegon slides as earnings miss forecast November 12, 2009 DISAPPOINTED market makers sold shares in Aegon yesterday after its third quarter pre-tax earnings missed consensus expectations. Despite bouncing back into the black with a net profit of €145m (£130.4m) compared to last year’s loss of €329m, the insurer saw its shares fall 6.4 per cent to close at €5.1. Pre-tax earnings fell year-on-year to [...]
Watchdog tells US banks to pay $45bn into insurance pot November 12, 2009 US banks are to pay $45bn (£27bn) to the Federal Deposit Insurance Corp (FDIC) to cover the rising cost of banking failures. In an unprecedented move, the FDIC board approved the prepayment of three years of premiums at a meeting yesterday. The prepayment has been described as an alternative to imposing another hefty emergency fee [...]
Governments to retain bank stakes for up to seven years November 11, 2009 GOVERNMENTS around the world will hold on to their stakes in bailed-out banks for an average of five to seven years in order to achieve a profitable exit, a new report has shown. The report, compiled by accountancy firm PricewaterhouseCoopers, said the complexity of individual banks’ situations, difficult market conditions and an unattractive disposal environment [...]
Swiss regulator unveils its plans for banker pay November 11, 2009 Switzerland’s largest banks and insurers will have to defer the bulk of managers’ bonuses and better match pay to performance under new rules aimed at curbing risky investments. Swiss financial regulator FINMA had planned to impose the rules on the vast majority of the financial sector, but watered down its original proposals after industry lobbies [...]
Conflicting signals halt winning streak November 10, 2009 US stocks closed mostly lower yesterday as differing views on whether the market can build on recent gains stalled the S&P 500’s six-day winning streak. The Dow industrials eked out a small gain to set a fresh 13-month high as cautious statements on the economic outlook from several Fed officials underscored the belief that easy [...]
Senator: Fed should not oversee banks November 10, 2009 THE US Senate’s top banking legislator has proposed plans to prevent a repeat of the credit crisis by creating a single US bank regulator and stripping powers from the Federal Reserve and Federal Deposit Insurance Corp. Senate Banking Committee Chairman Christopher Dodd called for the creation of three new government agencies, regulating over-the-counter derivatives, and [...]
Lloyds plans to axe 5,000 further jobs November 10, 2009 ANOTHER 5,000 jobs will be lost at Lloyds Banking Group, bringing the total number of sackings to 12,500 since the credit crunch began. Lloyds employees were yesterday warned by banking experts that there could be up to 30,000 sackings before the Lloyds-HBOS merger is complete. Unions branded the cuts, which were announced on the same [...]
CITY MOVES WHO’S SWITCHING JOBS November 9, 2009 SVG Investment ManagersAdam Steiner has been promoted to chief executive of the investment management firm from his previous position as head of research. Steiner replaces Tony Dalwood, who formerly co-founded the firm’s public equities team with him in 2002 and has now been appointed as chief executive of SVG Advisers and chairman of the SVG [...]
WHAT THE OTHER PAPERS SAY THIS MORNING November 9, 2009 FINANCIAL TIMES Banks face hike in funding costsBanks around the world face increases in funding costs that could cut profits and hit their customers as they look to refinance $7,000bn-plus in short-term debt expiring in the next three years with longer-dated bonds, according to research released today. Institutions seeking to reduce their reliance on short-term [...]