Diberdayakan oleh Blogger.

Popular Posts Today

Mark Carney Defends Bank Governor Pay Package

Written By Unknown on Jumat, 08 Februari 2013 | 11.46

The next governor of the Bank of England has been forced to defend his pay and perks package under questioning from MPs.

Mark Carney - the head of Canada's central bank - insisted his more than £800,000-a-year settlement was "equivalent" to that of the current boss, Sir Mervyn King.

He was speaking at his first hearing before the Treasury Select Committee before replacing Sir Mervyn on July 1 following his retirement.

The pay deal, which includes a £250,000 housing allowance, was in line with that of the current governor's on a "pay and pension" basis, Mr Carney said.

He added: "I'm moving from one of the least expensive capital cities in the world - Ottawa - to one of the most expensive capital cities in the world."

Mr Carney, who will become the first foreign governor of the Bank of England in its near 320-year history, will be paid the accommodation allowance on top of a £480,000 salary - well above the £305,000 pay level of Sir Mervyn.

But Erith & Thamesmead MP Teresa Pearce questioned whether he was concerned about "resentment" among Bank of England staff, given that their pay has been frozen for two years.

His comments come as the Bank of England's Monetary Policy Committee (MPC) kept the UK's interest rate at 0.5% and left its bond purchase programme, known as quantitative easing, on hold.

Inflation in the UK has remained above the 2% target since the financial crisis began in 2007, and raising interest rates would be one way of helping to bring it down.

But this would hit businesses and consumers in an economy that is struggling to recover - UK GDP contracted by 0.3% in the final three months of 2012.

Mr Carney hinted at more quantitative easing when he took over at the Bank.

"Unquestionably when I come to table there will continue to be considerable slack in the UK economy as evidenced by the labour market and more broadly across industry," he said.

"Unquestionably that will be a situation which merits - for a period of time - considerable monetary policy stimulus."

Mr Carney told MPs he was open to reviewing the UK's monetary policy framework, but said the bar to change should be "very high".

"The flexible inflation-targeting framework should remain broadly in place, but details need to be reviewed and could be changed," he said.

A review happens every five years in Canada, he said, and helps those within the government and bank understand the implications of the current policy.

The incoming governor was asked whether he thought nominal GDP - the cash value of national output without adjusting for inflation - should be targeted instead of just inflation.

But he answered: "I am far from convinced of the merits of moving to nominal GDP targeting.

"But it is a valid as part of the debate if one's looking at a framework."

Mr Carney was also asked for his thoughts on the Libor fixing scandal, a day after RBS was fined £390m by regulators for manipulating the rate.

"The behaviour that's been exhibited and confirmed this week particularly around for example Libor is reprehensible and should be prosecuted to the full extent of the law in the various jurisdictions that are affected," he said.


11.46 | 0 komentar | Read More

Findus Beef Lasagne Meals 100% Horsemeat

Tests on Findus beef lasagne have revealed that some of the ready meals were made entirely from horsemeat.

Findus analysed 18 of its beef lasagne products and found 11 meals contained between 60% and 100% horsemeat, the Food Standards Agency (FSA) said.

There is no evidence to suggest the horsemeat found in the Findus beef lasagne is a food safety risk, the FSA said.

However, the agency has ordered urgent tests on the lasagne for the veterinary drug phenylbutazone. Meat from animals treated with "bute" is not allowed to enter the food chain in Britain as it may pose a risk to human health.

All food companies have been told to test their beef products, with the FSA saying it was "highly likely" that criminal activity was to blame for the contamination.

Consumers who have purchased the ready meals - produced by French food supplier Comigel on behalf of Findus - have been advised by the FSA not to eat them and return them to the shop they were bought from.

Retail giant Tesco and discount chain Aldi have already withdrawn a range of ready meals produced by Comigel over fears they contained contaminated meat.

Findus UK has already started a full recall of its lasagne products. It withdrew its 320g, 360g and 500g lasagne meals from supermarket shelves as a precautionary measure earlier this week.

It came after Comigel alerted Findus and Aldi that their products "do not conform to specification".

It advised them to remove Findus beef lasagne and Aldi's Today's Special frozen beef lasagne and Today's Special frozen spaghetti bolognese.

The outside of a Findus factory. Shoppers who have bought the product can get a full refund, says Findus

Findus UK apologised to customers "for any inconvenience caused" - and said anyone who bought the affected lasagne products could get a full refund.

A spokesman said: "We understand this is a very sensitive subject for consumers and we would like to reassure you we have reacted immediately. We do not believe this to be a food safety issue.

"We are confident that we have fully resolved this supply chain issue. Fully compliant beef lasagne will be in stores again soon."

Tesco also decided to withdraw its Everyday Value spaghetti bolognese, which is produced at the same Comigel site.

A Tesco spokesman said: "We are aware of the results of the Findus tests and we will of course assist Findus with their recall process.

"Tests on our frozen Everyday Value spaghetti bolognese product are ongoing under our new DNA testing programme. We will inform our customers of the results as soon as possible."

The FSA, Defra and the Department of Health are working with businesses and trade bodies to enforce food safety and assess whether there are significant levels of improperly described meat in a whole series of processed beef products in the UK, including supplies to schools and hospitals.

Environment Secretary Owen Paterson said: "The presence of unauthorised ingredients cannot be tolerated ... the responsibility and for the safety and authenticity of food lies with those who produce it, and who sell or provide it to the final consumer."

Labour has accused ministers of being "asleep on the job" and has called for a police investigation into what it believes is fraud.

Shadow environment secretary Mary Creagh said she was "shocked and appalled" by the latest revelations.

She told Sky News: "The time has come for government ministers to pull their heads out of the sand and to take some swift action.

"We have had three weeks of damaging revelations about what is happening in the meat industry ... there is evidence that criminal gangs are involved in this, and frankly I cannot believe that the Government hasn't called in the police to investigate this in the UK.

"I don't see how we get to the bottom of it without getting in specialist teams and working out who is behind this fraud and why it is happening."

People must have confidence that the food they buy is properly labelled, legal and safe to eat, she added.

Anyone who has purchased a Findus beef lasagne can call the firm's UK customer care line on 0800 132584, those in the Republic of Ireland, 1800 800500, or email careline@findus.co.uk for a full refund.


11.46 | 0 komentar | Read More

RBS Hit With £390m Fine For Fixing Libor

Written By Unknown on Kamis, 07 Februari 2013 | 11.46

Revealed: The Secret Libor Messages

Updated: 3:48pm UK, Wednesday 06 February 2013

Sexual references, free meals and coded discussions were all part of the communications between RBS staff and others as they abused Libor rate-setting - even after they knew investigators were on the trail.

:: August 20, 2007

Yen Trader 4: where's young [Yen Trader 1] thinking of setting it?

Yen Trader 1: where would you like it[,] libor that is[,] same as yesterday is call

Yen Trader 4: haha, glad you clarified ! mixed feelings but mostly I'd like it all lower so the world starts to make a little more sense.

Senior Yen Trader: the whole HF [hedge fund] world will be kissing you instead of calling me if libor move lower

:: December 5, 2007

Yen Trader 2: FYI libors higher again today

Yen Trader 4: 'ucksake. keep ours low if poss. don't understand why needs to go up in yen

Yen Trader 2: no reason dude[,] [Bank C] and [Bank D] went high yest

Yen Trader 4: send the boys round

Yen Manager: pure manipulation going on

:: April 2, 2008

Senior Yen Trader: i am sure some HF [hedge fund] will complain tomorrow

Yen Trader 1: tough

Senior Yen Trader: we will say we lower every tenor ..1m 3m 6m ..we feel rbs name has very good credit ..no problem getting money in

Senior Yen Trader: good way to boost share price!

:: September 15, 2008

Yen Trader 1: can we lower our fixings today please [Primary Submitter]

Primary Submitter: make your mind up[,] haha , yes no probs

Yen Trader 1: im like a whores drawers

:: August 22, 2007

Yen Manager: Hi Mate, where are u calling the 6m and 3s Libor today?

Yen Trader 1: i put in 1.05 and 1.15

Yen Manager: ok cool...is that close to consensus?

Yen Trader 1: i think my 3s are too high[,] 6s will prob be 1.13 too[,] but i wanted high fixes today

Yen Manager: ok cool[,] its all a random variable for us at this stage it is just we have some small fixings

Yen Trader 1: well let me know if you have any preferencves [sic][,] each day

Yen Manager: thx will do

:: December 3, 2007

Yen Manager: for choice we want lower libors...let the [Money Market] guys know pls

Yen Trader 2: sure i am setting today as [Yen Trader 1] and cash guy off [Primary Submitter]

Yen Manager: great set it nice and low

Yen Trader 2: 1.02 in 6m or lower

Yen Manager: yeh lower

Yen Trader 2: 1.01 then cant really go much lower than that

Yen Manager: ok

Yen Trader 2: u care for 1m and 3m too[?] looks to me like fra map pretty flat

Yen Manager: lower generally dude

Yen Trader 2: cool

Yen Manager: within the acceptable bounds

:: February 15, 2007, showing Libor collusion between RBS and UBS

Yen Trader 2: how many people can u get to put this 1m libor low

UBS Yen Trader: well us[,] [Bank E,] and a few others i think

February 21, 2007

Yen Trader 2: what ur guys calling 3s libor[?] we need to get some low fixes

UBS Yen Trader: .64[,] yes will ask for low low high[,] 1m 3m 6m

Yen Trader 2: our guy agrees but reckons it will be 67[,] not good

UBS Yen Trader: no way! …

UBS Yen Trader: […] make sure your boys set low 1m and 3m

Yen Trader 2: will try though [Yen Trader 1/backup Yen LIBOR submitter] wants high 3s and 6s

UBS Yen Trader: we want high 6's too? don't let [Yen Trader 1] keep 3m high to help [Senior Yen Trader][,] i hate that guy

:: May 7, 2008

UBS Yen Trader: Hi [Sterling Cash Trader] if this is you can you pls ask for a low 6m in jpy for the next few days[.] Hope you are ok, was good seeing you last week[.] Cheers [UBS Yen Trader]

Sterling Cash Trader: Hi mate, I mentioned it to our guy on Friday and he seemed to have no problem with it, so fingers crossed.

:: December 4, 2008, showing Swiss Franc Libor manipulative conduct within RBS

Swiss Franc Trader: can u put 6m swiss libor in low pls?

Primary Submitter: NO

Swiss Franc Trader: should have pushed the door harder

Primary Submitter: Whats it worth

Swiss Franc Trader: ive got some sushi rolls from yesterday? …

Primary Submitter: ok low 6m , just for u

Swiss Franc Trader: wooooooohooooooo[,] 0.01%? thatd be awesome

Primary Submitter: 1.33

Swiss Franc Trader: perfect[.] u r a nice man

:: January 30, 2009

Primary Submitter: libors as requested

Swiss Franc Trader: you a top dog

:: May 5, 2009

Swiss Franc Trader: can we get high 3m, low 6m pls!

Primary Submitter: maybe

Swiss Franc Trader: PPPPLLLLLEEEEEAAAAASSSSEEEEEE

Primary Submitter: ok 41 52

Swiss Franc Trader: perfect perfect

:: May 14, 2009

Swiss Franc Trader: [Primary Submitter] pls can we get super high 3m[,] super low 6m

Swiss Franc Trader: PRETTY PLEASE!

Primary Submitter: 41 & 51

Swiss Franc Trader: if u did that[,] i would lvoe [sic] u forever

Primary Submitter: 41 & 55 then …

Swiss Franc Trader: if u did that i would come over there and make love to you[,] your choice

:: June 26, 2009, :: RBS collusion with interdealer brokers

Interdealer Broker B: Hello mate, [Yen Trader 1]? You all set?

Yen Trader 1: Yeah.

Interdealer Broker B: Right listen we've had a couple of words with them, you want them lower right?

Yen Trader 1: Yeah.

Interdealer Broker B: Alright okay, alright listen, we've had a couple words with them. You want them lower, right?

Yen Trader 1: Yeah.

Interdealer Broker B: Alright okay, alright, no we're okay just confirming it. We've, so far we've spoke to [Bank F]. We've spoke to a couple of people so we'll see where they come in alright. We've spoke, basically one second, basically we spoke to [Bank F], [Bank G], [Bank H], who else did I speak to? [Bank I]. There's a couple of other people that the boys have spoke to but as a team we've basically said we want a bit lower so we'll see where they come in alright?

Yen Trader 1: Cheers.

Interdealer Broker B: Cheers no worries mate.

March 3, 2010, Former Sterling Cash Trader now employed by Interdealer Broker A

Former Sterling Cash Trader: can i pick ur brain?

Primary Submitter: yeah …

Former Sterling Cash Trader: oh[,] we hve a mutual friend who'd love to see it go down, no chance at all?

Primary Submitter: haha [former UBS Yen Trader at Bank C] by chance

Former Sterling Cash Trader: shhh

Primary Submitter: hehehe …

Former Sterling Cash Trader: gotcha, thanks, and, if u cud see ur way to a small drop there might be a steak in it for ya, haha

Primary Submitter: noted ;-)

Former Sterling Cash Trader: 8-)

:: September 19, 2008 RBS Yen Trader engaged in 'wash trades' to compensate brokers

Interdealer Broker B: can you do me a favour … you're not going to get paid any bro for this and we'll send you lunch around for the whole desk. Can you flat…can you switch two years semi at 5 3/4 , 100 yards [meaning 100 billion yen] … between UBS. Just get … take it from UBS, give it back to UBS. He wants to pay some bro. We won't bro you …

Yen Trader 1: Yeah, yeah …

Interdealer Broker B: Yeah. Yeah. 100 yards … actually can you make it 150 and I'll send lunch around for everybody?

Yen Trader 1: Yeah.

:: November 22, 2010, conduct continues after US investigatrions start

Senior Yen Trader: hey ...you think we be able to convince [Primary Submitter] to change the libor today?

Yen Trader 1: i can try ... at the moment the FED are all over us about libors

Senior Yen Trader: thats for the USD? [$]

Yen Trader 1: ye[]s

Senior Yen Trader: dun think anyone cares the JPY libor

Yen Trader 1: not yet[,] i will walk over ot [sic] them

:: November 24, 2010, reflecting feigned refusal over Bloomberg Chat, immediately followed by agreement in recorded telephone conversation

Senior Yen Trader: was wondering if it suits you guys on hiking up 1bp [base point] on the 6mth Libor in JPY ... it will help our position tremendously

Primary Submitter: how you doing with all the volatilities these days? … to be honest happy with levels we see at the moment

Senior Yen Trader: ok no prob ... wouldn't want to cause any problem ... thanks mate

A telephone conversation commences: Senior Yen Trader: Hello?

Primary Submitter: Morning, [Senior Yen Trader]? Hi, [Primary Submitter].

Senior Yen Trader: Yeah, how are you?

Primary Submitter: I'm pretty good sir. Very Good. We're just not, we're not allowed to have those conversations on [instant messages].

Senior Yen Trader: Oh, sorry about that. I didn't know.

Primary Submitter: (laughter)

Senior Yen Trader: (laughter) Oh because of the, the BBA [British Bankers' Association] thing?

Primary Submitter: Yes, exactly.

Senior Yen Trader: Ah, ok ok.

Primary Submitter: So yeah, leave it with me, and uh, it won't be a problem.

Senior Yen Trader: Ok, great.


11.46 | 0 komentar | Read More

High Street Rescue Plan: Bid To Save Shops

By Liz Lane, Sky News Reporter

High street shops are being given a stark warning - change, or join the growing list of casualties who have collapsed in recent months.

The Government is setting up a national Future High Streets Forum to make sure other retailers do not go the way of HMV, Blockbuster, Jessops and Comet.

Leaders from retail, property and business will try to come up with ways to revitalise town centres, building on work that retail guru Mary Portas has already begun in 27 areas of England.

They will focus on getting the High Street to adapt to meet the changing needs of consumers by offering mentoring.

Local Growth minister Mark Prisk said that involves understanding the biggest threat to retailers.

"We shouldn't underestimate the challenge the online market represents," he said.

"It's a growing part of all our habits as consumers. We must make sure high streets adapt.

People walk past a HMV store in central London Retailers like HMV and Blockbuster have suffered in recent years

"Government has a role in that, at looking to make sure, as we are, that we have strong planning, but also councils have a role, businesses have a role, landlords have a role. We want to bring them all together, drive this forward."

The forum will investigate ways of improving parking, allowing commercial landlords to turn part of their building into residential property to bring more people into town centres, and making sure high streets are given priority when it comes to planning decisions.

It will also look at ways to increase the number of pop-up stores, which is something that Pam Honour, who regularly visits one in central London, welcomes.

She said: "I think it's a lovely idea. It's a nice variety if you go past this street every day, see something different every couple of weeks. Marks & Spencer changes its shop window every two days so why shouldn't a pop up shop do the same?"

Despite more of us turning to the internet to do our shopping, pop-up retailer Sophie Brittain said there was still a place for the high street.

She said: "You still kind of want the aesthetic, the touch, the feel, the smell. In our case we've got soaps and room scents and candles, but when you buy things online you can't know exactly what they're going to be like."

Another pop-up retailer, Nikki Connor, agreed, saying: "I think there's a place for both.

"People still like to go to the High Street and they still like to shop online for ease and to make sure that you get the size that you want, so I think there's room for everybody."

A £1m Future High Street X-Fund will be awarded to areas with the best ideas for rejuvenating their town centres. The winners will be announced in March.


11.46 | 0 komentar | Read More

UK Chip Firm ARM Rides Smartphone Wave

Written By Unknown on Rabu, 06 Februari 2013 | 11.46

British smartphone chip designer ARM has reported a 20% rise in full-year pretax profit, with nearly every smartphone in the world now containing its technology.

ARM Ltd made an annual pretax profit of £276.5m.

It also reported fourth-quarter profit of £80m, on revenue of £164.2m, which was above forecasts of £75.6m on revenue of £152.2m.

The Cambridge-based group licences its technology to chip makers and receives a royalty on each chip shipped in devices, from tech giants such as Apple and Samsung.

Consumers around the world are increasingly using the Internet on mobile devices rather than on PCs that are powered by processors designed by older firms like Intel.

"Five years ago an ARM processor could be found in just over a quarter of devices that you could use to browse the internet," ARM finance director Tim Score said.

Warren East, chief executive of ARM Holdings Plc, addresses the Reuters Technology summit in Paris ARM Ltd chief executive Warren East

"Last year, in 2012, three-quarters of Internet-connected screens and devices used an ARM processor in the main chip."

Shares in the group rose to a 12-year high after it said it would at least meet analysts' expectations for revenue in 2013.

The newest smartphones and tablets typically contain multiple ARM-based processors and increasingly ARM graphics as well, helping royalties for the quarter rise 19% to $136.8 million, strongly outperforming the market.

The company recognises royalties a quarter in arrears, so the royalty income came on 2.5 billion chips shipped in the third quarter of the year.

Licensing revenue rose 28% to $158m, with 15 licences signed for ARM's latest Cortex-A processors designed for mobile computing, servers and enterprise computing.

ARM said it expected to continue to outperform the wider semi-conductor market in 2013.


11.46 | 0 komentar | Read More

RBS Chief Gives Up £4m Shares In Libor Exit

By Mark Kleinman, City Editor

The head of RBS's investment bank will forfeit millions of pounds in past share awards following political pressure for a prominent scalp from the group's involvement in the global Libor-rigging scandal.

I have learnt that John Hourican, who was brought in to rescue the business after the bank was bailed out by British taxpayers in 2008, is to relinquish roughly £4m in share options awarded to him based on past performance.

He will receive a year's salary in lieu of notice, worth around £700,000.

The details of his exit, including the cancellation of his share options, are expected to be announced on Wednesday by RBS.

Mr Hourican will leave the bank at the end of the month, having overseen a massive winding-down of RBS's investment banking operation during the last four-and-a-half years.

His role is effectively being made redundant by a restructuring of the division, and he is leaving despite the fact that both regulators and the bank's board acknowledge that he had no knowledge of, or involvement in, Libor-rigging misdemeanours.

Mr Hourican was asked by the bank's board to forfeit the £4m he is owed in shares in the last few days, according to insiders, and accepted because he is said to have felt it would be in the best interests of RBS.

In addition, he will not receive any form of bonus or share award for 2012.

The bank, which is 82% owned by UK taxpayers, will on Wednesday agree to pay approximately £400m in fines to UK and US regulators.

The majority of the settlement will cross the Atlantic and will be recouped from past RBS bonus pools, as well as payouts for 2012, following a demand from Chancellor George Osborne.

Around £100m of this will be clawed back from hundreds of senior managers across the RBS markets business, as Sky News revealed last week.

RBS is expected to spell out the details of the clawback arrangements on Wednesday.

Regulatory sources said that the Financial Services Authority (FSA) had told RBS that Mr Hourican retains its confidence and will not be prohibited from taking a future role in the banking industry.

Mr Osborne's intervention underlines the acute political sensitivity surrounding such huge fines being paid by a bank majority-owned by taxpayers.

Speaking on Monday, Mr Osborne hinted that the job of Stephen Hester, RBS chief executive, was safe but added: "It is right that those who are responsible - not just those who are directly responsible, but also those who were doing the supervising - must also bear a level of responsibility."

Last week, Sky News revealed the looming row between RBS and the Treasury over Mr Hourican's share awards.

Mr Hourican is understood to have stepped in to protect the role of Peter Nielsen, who heads the markets business and whose job is now thought to be safe.

"He has shown real leadership over this," one ally of Mr Hourican said.

The discussions between RBS and the authorities had not been completed on Tuesday night, but people close to the talks said that the final settlement is likely to include fines totalling roughly £400m.

Between £85m and £90m of the total will go to the FSA, with the remaining sum split between the US Department of Justice and the Commodity Futures Trading Commission.

The settlement will make RBS the third bank to acknowledge that employees committed abuses of the Libor-setting regime, either for personal gain or to project a false impression of their bank's health.

Barclays was fined more than £290m, with UBS, the Swiss bank, hit by penalties of $1.5bn (£958m).

Emails and instant messages sent by RBS traders will also be released by regulators depicting the brazen way in which they attempted to manipulate the crucial inter-bank borrowing rates.

One of the outstanding issues on Tuesday night was whether RBS would be able to avoid criminal charges as part of the settlement, for which the DoJ has been pressing.

Settlements with other banks will follow in the coming months.

RBS and the FSA declined to comment. Mr Hourican could not be reached.


11.46 | 0 komentar | Read More

Osborne: Bank Reforms Will Protect Taxpayer

Written By Unknown on Selasa, 05 Februari 2013 | 11.46

Extracts From Osborne's Speech

Updated: 12:18pm UK, Monday 04 February 2013

As Chancellor George Osborne reveals new-ring-fencing regulation to prevent banks from using the "too big to fail" excuse, Sky News has access to the abridged text.

Think of some of the most important moments in your life.

When you bought your own home with a mortgage.

When you took the plunge and started your own business.

When you retired and drew on your pension.

One each of those occasions, you relied on the financial system.

You put your trust in financial firms at some of the most exciting and distressing times, moments in your life. And that's why it's so important to have that trust reciprocated. That is why it's so important to have a banking system that works for you.

Like all this Government's reform - to welfare, to the economy, to schools and to banking - we want to back aspiration and be on the side of those who want to work hard and get on.

Our principles are simple: if you do the right thing, government should support and help you, and remove the barriers in your way.

If you do the wrong thing, you should take responsibility for your actions.

And sadly, nowhere have these simple principles been broken more clearly and indefensibly than in our banking system over the last decade.

Irresponsible behaviour was rewarded, failure was bailed out, and the innocent - people who have nothing whatsoever to do with the banks - suffered.

For many, the financial crash was confirmation of what they felt about our society: that those who are only out for themselves get away with it; and those who work hard and play by the rules get punished.

That is why, five years on from that crash, people are still so angry.

And when people discover more about what went so wrong - the mis-selling of interest rate swaps to small firms who went bust as a result; the greed and corruption on the Libor trading floor - they get angrier still. I understand that anger. I feel it too.

But anger can be a negative, destructive thing if it is not channelled into change.

Let's take the anger we feel about the banks and turn it into change to build the banking system that works for us all.

2013 is the year when we re-set our banking system.

So the banks work for their customers - and not the other way round.

So that those who guard over the banks to keep our economy safe are the right people with the right weapons to do the job.

And so that when mistakes are made, it's the banks and not the taxpayer that picks up the bill.

First, we've got a brand new watchdog with new powers to keep our banks safe so they don't bring down the economy.

Second, we've got a new law to separate the branch on the high street from the dealing floor in the city to protect taxpayers when mistakes are made.

Third, we're going to start with the industry, changing the whole culture and ethics of the business, so they work for you.

Fourth, we're going to give customers the most powerful weapon of all: choice.

This year we're going to start separating the high street banking we all depend on from the City trading floor.

When the RBS failed, my predecessor Alistair Darling felt he had no option but to bail the entire thing out.

I want to make sure that the next time a Chancellor faces that decision they have a choice.

To keep the bank branches going, the cash machines operating, while letting the investment arm fail.

No more rewards for failure. No more too big to fail. No more taxpayers forking out for the mistakes of others.

The same rules for the banking business as any other business in a free market.

It won't mean banks won't make mistakes.

But it does mean that if they do, those parts of the banking system that are vital for families and businesses can continue without resort to the taxpayer.

Your high street bank will have different bosses from its investment bank.

Your high street bank will manage its own risks, but not the risks of the investment bank.

And the investment bank won't be able to use your savings to fund their inherently risky investments.

And my message to the banks is clear: if a bank flouts the rules, the regulator and the Treasury will have the power to break it up altogether - full separation, not just a ring fence.

We're not going to repeat the mistakes of the past.

In the jargon, we will "electrify the ring fence".

Banks working for their customers, not themselves.

Taxpayers' money protected.

The guardians of financial stability with the tools they need to keep us safe.

On all these fronts, we are making major changes.

A financial industry that is strong, successful and inspires the pride of all those who work for it.

That's what Government should be about - taking the big tough decisions because they're right for the long-term good of our country.

Our country has paid a higher price than any other major economy for what went so badly wrong in our banking system.

The anger people feel is very real.

Let's turn that anger from a force of destruction into a force for change.

Change that will give us a banking system that will work for us all.

In 2013, thanks to the changes we are making, that goal is in sight.0


11.46 | 0 komentar | Read More

Barclays Braces For New Mis-Selling Hit

By Mark Kleinman, City Editor

Barclays will tomorrow add to its £2.5bn mis-selling bill in a move that will underline the scale of the rehabilitation confronting the bank's new chief executive.

Senior insiders say the bank is preparing to make significant new provisions for compensating customers who were mis-sold interest rate swaps and payment protection insurance (PPI) policies.

Barclays is also ultimately likely to have to set aside money for potential Libor-related litigation following its £290m in fines last summer for manipulating the interbank borrowing rate.

Barclays will confirm one or more of the new provisions on Tuesday morning, according to people close to the bank.

Assuming it does make an announcement on Tuesday, it would come just a week before the bank's new chief executive, Antony Jenkins, unveils a blueprint for rebuilding Barclays' reputation.

Mr Jenkins and Sir David Walker, Barclays' chairman, will appear before the Parliamentary Commission on Banking Standards on Tuesday morning.

A person close to the bank confirmed that the sums would be "material" but declined to comment on the precise numbers involved.

Barclays has already set aside £2bn for PPI mis-selling and £450m for interest rate hedging products, the latter of which is the largest bill for any UK bank.

On Sunday, the bank confirmed Sky News' revelation that its group finance director, Chris Lucas, is to step down. Mr Lucas is one of four men under investigation by the Financial Services Authority in relation to disclosures made by Barclays during capital-raisings in 2008 that enabled it to avoid taking money from British taxpayers.

Barclays refused to comment on Monday night.


11.46 | 0 komentar | Read More

Exclusive: Barclays Finance Chief Lucas Quits

Written By Unknown on Senin, 04 Februari 2013 | 11.46

By Mark Kleinman, City Editor

The group finance director of Barclays is to step down amid an ongoing probe by British regulators into a controversial £7bn capital-raising that allowed the bank to avoid the Government's clutches in 2008.

I can exclusively reveal that Chris Lucas, who has been Barclays' finance director for almost six years, will retire later this year.

The bank will announce Mr Lucas's decision to leave in a statement to the stock market on Monday. Headhunters have been appointed to identify his successor.

It was unclear on Sunday whether Mr Lucas will receive any form of payoff, although insiders described this as "extremely unlikely".

Including bonuses and deferred share awards, Mr Lucas earned almost £4m in each of the last two years.

He was one of several executives who waived an annual bonus for 2012 because of Barclays' involvement in the Libor scandal but may still be in line for an award under the bank's long-term incentive plan for last year.

The news of his retirement will come at an awkward time for Barclays and its chief executive Antony Jenkins, who is attempting to rehabilitate the bank's reputation in the aftermath of a series of scandals.

Barclays has been under investigation for several months by the Serious Fraud Office (SFO) and Financial Services Authority (FSA) for various disclosure issues related to its 2008 fundraisings.

Last week, the Financial Times reported that one of the angles being probed by the authorities was whether Barclays lent the money to Qatari investors which was then used to acquire Barclays shares.

Such an action would be illegal because it would have presented a potentially false impression of Barclays' financial health and attractiveness to outside investors.

There is no suggestion that Mr Lucas or any of the three others under investigation - Richard Boath, a senior investment banker who still works at the bank; Roger Jenkins, the former head of Barclays' lucrative tax-structuring operations; and John Varley, Barclays' former chief executive - are guilty of any wrongdoing, and insiders stressed that Mr Lucas's retirement was unconnected to the inquiries.

The individuals are being investigated by the FSA, while the SFO is looking at the bank.

In July last year, Barclays said in a statement: "The FSA is investigating the sufficiency of disclosure in relation to fees payable under certain commercial agreements and whether these may have related to Barclays capital raisings in June and November 2008. Barclays considers that it satisfied its disclosure obligations and confirms that it will co-operate fully with the FSA's investigation."

A series of share placings and fundraisings in 2008 allowed the bank to raise capital privately and avoid having to take money from the British taxpayer. That enabled Barclays to retain control of its strategy and the ability to continue paying big bonuses in a way which eluded both Lloyds Banking Group and Royal Bank of Scotland.

As Barclays' finance director, Mr Lucas has been an architect of the bank's strategy during the last six years.

His earlier career included a long stint at PricewaterhouseCoopers, the accountancy firm, where for five years he was the partner responsible for auditing Barclays.

The FSA continues to have confidence in Mr Lucas's ability to do his job.

Mr Lucas's departure later this year will complete a clean sweep of Barclays' top management following its £290m fine for manipulating the interbank borrowing rate Libor last June.

Marcus Agius, the former chairman, was replaced by the City grandee Sir David Walker, while Bob Diamond, chief executive, was effectively forced out by regulators, with Mr Jenkins appointed as his successor. Jerry del Missier had only been chief operating officer for a few days when he also resigned over the Libor scandal.

It is unclear whether Barclays has already drawn up a list of either internal or external potential successors to Mr Lucas although one person close to the bank said it was possible that a replacement would be announced imminently.

Last week Mr Jenkins waived his 2012 bonus days after Sky News revealed that Sir John Sunderland, the chairman of Barclays' remuneration committee, had signalled to investors that the board wanted to award him a significant payout.

Mr Jenkins and Sir David will appear before the Parliamentary Commission on Banking Standards on Tuesday, when they are likely to be quizzed about the status of the probes into the 2008 capital-raisings, the bank's culture and the protracted mis-selling episodes which are blighting the balance sheets of the major UK banks.

Mr Jenkins will then present his strategy for Barclays alongside the bank's annual results on February 12.

Last month he told employees that they would have to abide by a strict new ethical code of conduct if they wanted a future at the company.


11.46 | 0 komentar | Read More

Triple-Dip Recession May Be Dodged - Report

Britain is set to avoid the feared 'triple-dip' recession, according to a new survey.

Business confidence has now strengthened to the highest level since the second quarter of 2011, the ICAEW/Grant Thornton Business Confidence Monitor (BCM) report has suggested.

The BCM survey suggests GDP will expand by 0.4% in the first quarter of the year, after the 0.3% contraction in the last quarter of 2012.

ICAEW chief executive Michael Izza said: "There was a risk that, combined with the traditional January blues, the bad weather and some high profile retail collapses, talk of a triple-dip recession could become self-fulfilling.

"These results show that we are set to avoid a third period of technical recession, but no one should be complacent.

"There is only one way out of our economic malaise, and that's to increase our economic output. Such a task isn't going to be easy, or indeed quick."

Firms have seen a 1% increase in staff in the last year and plan to increase headcount by another 1.5% over the next 12 months.

One in 10 firms say the availability of management skills is a greater challenge than a year ago, suggesting that companies may struggle to recruit the right people to lead the recovery.

However, although business confidence appears to be widespread, it is most optimistic in Wales and the South East.

The report added that the construction sector, which has been hit hard in recent reporting periods, has renewed confidence along with IT and telecommunications.

Grant Thornton LLP chief executive Scott Barnes said: "Export growth rose slightly this quarter as the global economy picked up.

"This is coupled with an improvement in both profit and turnover growth, which companies expect to increase in the year ahead.

"Despite a rise in confidence though, companies' modest plans for capital investment are a worry as this is crucial to a strong and sustained recovery."


11.46 | 0 komentar | Read More
techieblogger.com Techie Blogger Techie Blogger