Basel says bank bondholders must bear losses January 13, 2011 BASEL bank regulators have laid out rules making clear that holders of hybrid bank debt will take losses if a lender becomes insolvent, rather than taxpayers. One of the biggest controversies of the financial crisis was how holders of subordinated bank capital debt escaped liability for bank failures even when public funds were being used [...]
Number of insolvencies drops from record levels January 10, 2011 CORPORATE insolvencies plummeted by over 17 per cent last year, it was revealed yesterday. The figures show that industry recovered from record high levels of insolvency in 2009. Around 21,000 businesses declared corporate insolvency last year, down from 25,432 in 2009, according to consultants RSM Tenon. “We have seen a record decrease in corporate insolvency [...]
EU proposes overhaul to stop bailouts January 6, 2011 THE EU released a set of proposals yesterday that would give regulators the power to take over failing banks and impose haircuts on senior bondholders. The European Commission, headed by Michel Barnier, published the 100-page document, which is to form the basis for consultation submissions until 3 March. The document outlines plans to create a [...]
Fewer closures in 2010 but many firms are still walking an economic tightrope January 5, 2011 FAR fewer struggling UK companies fell into administration in 2010 compared with 2009, Deloitte research showed yesterday. Insolvencies fell by 35 per cent, or by 1,102 companies last year, to 2,086 in 2010 from 3,188 in 2009, analysis of notices in the London Gazette over the year showed. Policymakers have worked to keep the business [...]
STOCKS MUST NOT RELY ON QE STIMULUS January 3, 2011 CFD MARKET STRATEGIST, GFT AS WE head into the new year, there are a number of significant financial and economic issues still unresolved. The most immediate problem is the European debt crisis. The potential insolvency of many banks and the high levels of public debt of many member states will continue to weigh on the [...]
Government guarantees on loans create ethical perils, report says December 19, 2010 GOVERNMENT guarantees of bank creditors warp incentives and damage the “ethical foundations of capitalism”, according to a report out today. State guarantees create a system in which “the poor pay taxes to keep the rich rich, regardless of how foolish or lazy the loans they have made might be”, said the influential think tank Policy [...]
Emerging markets can give us all Christmas cheer December 19, 2010 WITH temperatures dropping to -15C and snow making it impossible to get to shops to fill those all important stockings, it’s hard to partake in this year’s Christmas cheer. It’s even harder to be jolly after a year that promised the beginnings of great things, which never came. But hope is the mantra for the [...]
Give your career a new year’s boost December 8, 2010 WITH 2011 on the horizon, now is an excellent time to start thinking about adding a new string to your bow. If you are in search of a New Year’s Resolution, you could do worse than choose to study for a professional qualification. Luckily, there are options this January. BPP is launching its MBA next [...]
WHAT THE OTHER PAPERS SAY THIS MORNING December 6, 2010 FINANCIAL TIMES EMPLOYER OPTIMISM INCREASES IN BIG ECONOMIES Hiring in the US and half a dozen other leading economies will increase for the first time in more than two years during the first quarter of 2011, according to a report released on Monday by Manpower, a global recruiting firm. Manpower’s Employment Outlook Survey shows plans [...]
Two dangers to look out for in 2011 November 30, 2010 AS readers know, I am relatively sanguine about the outlook for the global and UK economies next year. But this doesn’t mean that I’m blind to the risks facing the recovery. Two in particular worry me. The first is the possibility of a break-up of the euro. Arturo de Frias at Evolution Securities has crunched [...]