News

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

Citigroup reshuffle aimed at smoothing asset sales

July 9, 2009

WALL Street giant Citigroup yesterday unveiled a boardroom shuffle as it continues efforts to sell off non-core parts of the business. Chief financial officer (CFO) Edward “Ned” Kelly will become vice chairman with responsibility for strategy, as well as mergers and acquisitions, which will in practice mean disposing of assets from Citi’s “bad bank”, Citi [...]
Buffett talks of new US stimulus

July 9, 2009

Legendary investor Warren Buffett said yesterday unemployment in the US could hit 11 per cent and a second stimulus package might be needed as the economy struggles to recover from recession. Buffett, the billionaire founder of Berkshire Hathaway, said Americans suffered “a shock to the system” from the economic difficulties in the final quarter of [...]
Cerberus in hedge fund solution

July 9, 2009

Private equity firm Cerberus is to place investors seeking withdrawals from one of its hedge funds into a special purpose vehicle, a source said yesterday. The firm has sent a letter to clients stating the vehicle will sell assets over time and make cash distributions. For investors remaining in the fund, fees will be reduced. [...]
More Corus jobs under threat

July 9, 2009

Another 366 jobs are under threat at the Scunthorpe unit of giant steelmaker Corus, the group’s Indian owner Tata Steel warned yesterday, as it pushed ahead with plans to align its employment costs with expected steel demand. Tata, the world’s sixth-biggest steelmaker, said consultations with employees at the plant have begun, and it will seek [...]
Segro agrees Brixton offer

July 9, 2009

INDUSTRIAL landlord Segro said yesterday it agreed an offer for warehouse specialist Brixton in a deal worth £109.4m. The planned combination will give Segro – formerly known as Slough Estates – a property portfolio worth £5.5bn based on May valuations. Segro is accompanying the Brixton deal with a £250m share issue, half of which will come [...]
Bond insurers obliged to pay out over Bradford & Bingley

July 9, 2009

COMPANIES that provide insurance against bond defaults will have to pay out to cover the recent non-payments by nationalised building society Bradford & Bingley (B&B), following a key ruling yesterday. The International Swaps and Derivatives Association (ISDA) ruled that B&B’s failure to keep up with payments on £325m of Tier 2 bonds constituted a “credit [...]
STANFORD DENIED BAIL

July 9, 2009

ALLEN Stanford, the Texas financier, will remain in jail after a federal judge yesterday denied his request to reconsider detention pending trial. Stanford, who faces criminal fraud charges, was initially granted bail by a judge, but federal prosecutors successfully argued before US District Judge David Hittner that the billionaire was a serious flight risk who [...]
Man boosted by private investor sales

July 9, 2009

MAN Group, the world’s largest publicly traded hedge fund, said yesterday funds under management fell over the first quarter of the year, but investors were buoyed by a surge in private investor sales and better-than-expected levels of redemptions. The group reported a 7.5 per cent drop in funds under management over the period, from $46.8bn [...]
FSA will publish complaints

July 9, 2009

THE FINANCIAL Services Authority (FSA) is to name and shame financial services companies that provoke the most consumer complaints, bringing to an end its policy of being tight-lipped on its investigations. The proposals, which were partially outlined in chancellor Alistair Darling’s white paper on financial regulation would see companies forced to publish their own complaints [...]
Women’s earning power decimated by having kids

July 9, 2009

HAVING children has a devastating impact on women’s earning power, a new report has revealed. The report, compiled by women’s rights campaign group the Fawcett Society and entitled “Not Having It All”, said that childless women working full time earned on average 9 per cent less than men, but that the gender pay gap rose [...]