News

Your daily news update straight from the City PM newsroom in London

FSA and Brown take on King

October 21, 2009

THE FINANCIAL Services Authority (FSA) and Prime Minister Gordon Brown yesterday hit back at Bank of England governor Mervyn King who has said that banks which are “too big to fail” should be broken up to prevent another financial crisis. The FSA will publish a paper today which will argue that carving up retail and [...]
Myners disagrees with Obama on pay

October 21, 2009

IT is almost funny how, in our topsy-turvy world, highly-paid bank workers are now being accused of exploiting the capitalist class in the form of bank shareholders. The latest to make that claim is Lord Myners, the City Minister, who described the present levels of bonuses as “a market failure”, by which he meant proof [...]
WHAT THE OTHER PAPERS SAY THIS MORNING

October 21, 2009

FINANCIAL TIMES MACQUARIE MOVING TO DRAPERS GARDENSMacquarie has agreed a deal to occupy one of the largest developments in Canada, raising expectations of a surprise shortage of new office space in the Square Mile. The Australian financial group will move into the majority of the Drapers Gardens scheme near the Bank of [...]
Euro rises to 14-month high

October 21, 2009

The euro rose above $1.50 yesterday for the first time since August 2008 as expectations that the Federal Reserve would hold US interest rates very low for some time yet continued to weigh on the dollar. The euro rose to $1.5003, its highest in about 14 months. It was last trading at $1.4989, up 0.3 [...]
Moulton to list new vehicle

October 21, 2009

Jon Moulton, the high-profile private equity guru who recently quit AlchemyPartners is planning to raise £100m for his comeback firm Better Capital through a listing on the stock market
Setback for Oracle Sun tie-up

October 21, 2009

Europe’s antitrust chief told the president of Oracle yesterday that the tech giant had so far failed to ease concerns that its plan to buy Sun Microsystems may be anti-competitive. The European Commission is reviewing the world’s second biggest software maker’s planned $7bn (£4.2bn) takeover of Sun, with a decision expected by 19 January on [...]
Insurer Pearl offers better bonds deal

October 21, 2009

PEARL, the life insurance group that is planning a stock market flotation sometime next year, has resurrected discussions with the disgruntled holders of £500m of its bonds. Earlier this year, Pearl, then led by serial entrepreneur Hugh Osmond, suspended interest payments on the bonds, sparking protests from the holders, including representatives from Rathbone, F&C, Axa [...]
Commerz bank wins ruling to withhold Dresdner bonuses

October 21, 2009

A COURT in Frankfurt yesterday backed Commerzbank chief executive Martin Blessing’s campaign against excessive bonus payments when it struck down claims by 13 Dresdner Bank employees over bonuses. Current and former employees of Dresdner Bank sued parent company Commerzbank for its refusal to pay out claims ranging from €29,166 to €450,000 , totalling around €2m. [...]
Serious Fraud Office begins probe into City trader Levene

October 21, 2009

The Serious Fraud Office (SFO) has launched a formal criminal investigation into the activities of north London financier Nicholas Levene. The 45-year-old, from High Barnet, has been declared bankrupt as City clients pursue him through the courts over alleged debts of at least £200m. The Serious Fraud Office (SFO) said it has opened an inquiry [...]
Tax credits boost profit at Deutsche

October 21, 2009

DEUTSCHE Bank yesterday said it expects third-quarter profit to triple after a boost from tax credits, though analysts said the market had been anticipating an even better performance from the bank. Germany’s biggest bank said pre-tax profit for the three months to September would be in the range of €1.3bn (£1.17bn), with net profit coming [...]