What is helicopter money and could it save the global economy from another recession? February 24, 2016 Inflation is below target in most of the world's major developed economies. With interest rates at record lows and economists still split on the effects of quantitative easing, helicopter money has been touted as a possible weapon in central banks' arsenals. The idea The 18th century philosopher David Hume asked what would happen if some good fairy went around [...]
In defence of CVAs and pre-packs: The UK’s insolvency regime might not be perfect, but it does minimise creditors’ losses and protects staff more than alternatives February 19, 2016 When a company enters an insolvency procedure, it does so because its debts are unpayable or unsustainable. In all likelihood, creditors face losing money. There just isn’t enough to go around. And, without intervention, the impact of the company’s insolvency extends far beyond just the creditors’ loss: jobs could go and suppliers might be losing a key customer, [...]
UK housing crisis: The next problem area will be retirement homes February 17, 2016 Talk of the housing crisis conjures up images of first time buyers trapped by sky high prices, as their income is syphoned off into rent. But alongside the cash-strapped "generation rent", there's another age group at risk: the next crisis may well be in retirement homes. At the heart of the difficulties in residential care lies [...]
One third of oil firms at risk of bankruptcy due to plummeting prices February 16, 2016 A third of oil producers are at risk of going bankrupt this year due to low commodity prices, according to a report by Deloitte. Around 175 companies may become insolvent as they collectively have more than $150bn in debt and are struggling to obtain financing, according to the study. "These companies have kicked the can down [...]
Shoe chain Brantano bought out of administration by previous owners Alteri February 15, 2016 Alteri Investors has bought back most of shoe giant Brantano's stores less than a month after calling in administrators and three months after acquiring the brand. PwC, the administrators, said 140 of Brantano's stores and concession have been sold back to a company controlled by the Mayfair investment firm, preserving 1,372 jobs, after interest from a number of buyers. [...]
Insurers are getting better at looking after data but there’s still some way to go, finds Prudential Regulation Authority report February 9, 2016 Insurance companies are getting better at the way they handle and protect data, but there are still some areas they fall short in. According to a report released today by the Prudential Regulation Authority (PRA), the insurance industry has seen "steady" improvement since the financial services watchdog published a study on the issue of data use [...]
Abolish bank deposit protection to make the banking system safer January 21, 2016 Deposit insurance has been the most sacrosanct component of the regulatory regime for banks since it was widely introduced during the 1970s following the collapse of the Bretton Woods regime. However, while it seeks to protect consumers against the undercapitalisation of banks and their tendency to collapse in times of stress, it has also encouraged [...]
Football supporters’ groups given government backing and extra £1m funding from Premier League in new report January 19, 2016 Premier League and Football League clubs have been instructed by the government to consult more regularly with supporters' groups in a new report. Clubs should meet with fans' groups at least twice a year and consult them on any major changes to the club's identity such as a colour change, new club crest or relocating [...]
India holds rich opportunities for the City – if we sustain reform momentum January 19, 2016 The deep cultural, economic, political and social bonds between the UK and India are longstanding. But this week the partnership between India and the UK will reach another significant milestone, as chancellor George Osborne and the finance minister of India meet in London for their latest bilateral Economic and Financial Dialogue to discuss priorities for 2016. [...]
City Moves for 15 January 2016 | Who’s switching jobs January 15, 2016 LendInvest Online lender for short-term property finance LendInvest has appointed Ruth Pearson as its first in-house legal counsel. Ruth joins LendInvest from Simmons & Simmons where she was a managing associate in the banking team. She joined Simmons & Simmons as a trainee in 2007 and qualified in 2009. During her eight years in private [...]