O’Neal Walks Away With $161 million
by Stewart Douglas
Story link: O’Neal Walks Away With $161 million
According to media reported today former Merrill Lynch chief executive has received a retirement offering in excess of $160 million following his departure from post at the leading investment bank in light of their sub-prime losses realised last quarter.
The move sees the under fire executive, who was ushered out of the company yesterday, take a […]
Deutsche Bank Q3 Profits Announced
by Stewart Douglas
Story link: Deutsche Bank Q3 Profits Announced
Investment giant Deutsche Bank has today announced its profit figures for the third quarter, highlighting a significant fall in earnings prior to tax as a result of its exposure to the US sub-prime mortgage lending crisis.
Profits, before charging to tax, were £1.12 billion for the third quarter, down just under 20% on the results of […]
Law Lords support consumers on credit card insurance
by Gill Montia
Story link: Law Lords support consumers on credit card insurance
The House of Lords has ruled that credit card providers must continue to refund customers who purchase goods and services abroad that are not delivered, or are damaged.
Lloyds TSB and Tesco Personal Finance brought the case, which challenged the Consumer Credit Act.
However, an appeal against an original decision in the High Court has now been […]
Gender Pension gap widens
by Gill Montia
Story link: Gender Pension gap widens
Research from Scottish Widows confirms a significant difference in the pension prospects of women and men.
Apparently, only 41% of women earning over £10,000 a year currently save into a pension plan, compared with 54% of men.
The figures indicate that the gender pension gap is getting worse, as the proportion of men making adequate pension provision […]
Investment funds flourish despite credit squeeze
by Gill Montia
Story link: Investment funds flourish despite credit squeeze
The Investment Management Association (IMA) has published its latest figures, which indicate that the credit squeeze has had little impact on the amount of money coming into UK investment funds.
During September, cash under management of UK domiciled investment funds increased 2.5% on August, to £468.3 billion. The figure is 21% higher than in September […]
UBS Announced Losses In Connection With Sub-Prime
by Stewart Douglas
Story link: UBS Announced Losses In Connection With Sub-Prime
Investment bank UBS has today announced its first loss in just under five years over the third quarter of 2007, making it the next high profile casualty of the sub-prime mortgage market collapse, alongside Citigroup, Bear Stearns and Merrill Lynch.
The Switzerland based investment bank was forced to take substantial writedowns over the period to reflect […]
Merrill Boss Out
by Stewart Douglas
Story link: Merrill Boss Out
Investment bank Merrill Lynch has today announced that chief executive Stan O’Neal has retired from his position, as effective immediately in light of the company’s substantial losses in the third quarter derived from its sub-prime exposure.
Mr O’Neal had been very much underfire from a policy point of view, with market analysts and the media calling […]
Banks use delaying tactics in repaying charges
by Gill Montia
Story link: Banks use delaying tactics in repaying charges
High Street banks stand accused of continuing to delay payments to thousands of customers who believe they have been successful in reclaiming penalty charges.
According to This is Money, the financial website, the banking sector has paid out approximately £1 billion in reclaimed charges so far this year.
However, there is evidence to suggest that banks are […]
FSA checks up on hedge funds
by Gill Montia
Story link: FSA checks up on hedge funds
The Financial Services Authority (FSA) has warned London-based hedge funds that it is dissatisfied with the level of market abuse, such as insider trading, being practiced by the sector.
As a result, the FSA is planning a series of checks on the anti-abuse measures put in place by hedge fund managers. The visits should begin in […]
Blackstone Could Back Out Of PHH Deal
by Stewart Douglas
Story link: Blackstone Could Back Out Of PHH Deal
The reputable equity outfit Blackstone Group could be close to calling time on its agreement to purchase US lender PHH in spite of its longstanding reputation for never backing down from an acquisition according to reported in US media today.
The prospective bid by the equity group and the investment division of General Electric would see […]
Merrill Executive One Step Closer To Departure
by Stewart Douglas
Story link: Merrill Executive One Step Closer To Departure
Investment bank Merrill Lynch is today rumoured to be one step closer towards parting company with its under-fire chief executive officer Stan O’Neal in light of its recent substantial losses arising from exposure to the troubled sub-prime lending sector.
According to sources close to the company reported in the US media, the Merrill Lynch board have […]
Application fraud increases by 23%
by Gill Montia
Story link: Application fraud increases by 23%
CIFAS, the fraud prevention service, has reported an increase in the numbers of people lying on application forms in an attempt to secure credit.
The official figure increased 23% in the first nine months of this year, as compared with the same period of 2006.
Cases of “application fraud” reported by banks and building societies totalled 57,321 […]
Cerberus’ Northern Rock bid supported by GMAC
by Gill Montia
Story link: Cerberus’ Northern Rock bid supported by GMAC
GMAC, the US financial services group, is supporting Cerberus, the US private equity firm, in its plans to bid for Northern Rock.
Cerberus owns a 51% share in GMAC, which holds around £140 billion in assets, and GMAC’s involvement with Cerberus will give any bid additional weight.
However, Virgin remains a strong competitor in resolving the future […]
Credit Suisse Beats UBS In Brazilian Market Share
by Stewart Douglas
Story link: Credit Suisse Beats UBS In Brazilian Market Share
Swiss investment bank Credit Suisse has beat rival UBS in rankings published today for the fast-growing Brazilian equity market in terms of capital, primarily as a result of four major deals put through in the last week.
The top-flight investment group accelerated beyond UBS in rankings published by research house Dealogic after it was involved in […]
JC Flowers Announces Potential Board For Northern Rock As Investment Battle Heats Up
by Stewart Douglas
Story link: JC Flowers Announces Potential Board For Northern Rock As Investment Battle Heats Up
The takeover talks surrounding troubled lender Northern Rock appear to have made headway today, with equity group JC Flowers announcing it had created a provisional management team in the event of it launching a successful bid for the bank.
The move today saw the private equity firm announce its choice of management staff should it succeed […]
Chancellor calls for Northern Rock resolution
by Gill Montia
Story link: Chancellor calls for Northern Rock resolution
The Chancellor of the Exchequer, Alistair Darling, is urging the board of Northern Rock and its recently appointed chairman, Bryan Sanderson, to secure an early resolution to the bank’s future.
The move has been seen as putting responsibility for the bank’s plight squarely on its management and Mr Darling has made it clear that the Government […]
Enel Buys OGK-5 Stake From Credit Suisse
by Stewart Douglas
Story link: Enel Buys OGK-5 Stake From Credit Suisse
Europe’s third largest utility group Enel has today announced it has reached an agreement with investment bank Credit Suisse over the former’s stake in Russian group OGK-5 in a move that will see it become a major shareholder in the company with a view to increasing its foothold in the central European energy market.
Italian power […]
Merrill Lynch Could Take Further Writedowns
by Stewart Douglas
Story link: Merrill Lynch Could Take Further Writedowns
Troubled investment bank Merrill Lynch was today under fire again, with market analysts suggesting it may need to take further losses beyond the $8.4 billion writedowns announced earlier in the week in order to reflect the extent of its sub-prime linked exposure.
The Wall Street investment outfit saw its shares hit again today following the announcements, […]
Chancellor calls for changes in banking regulation
by Gill Montia
Story link: Chancellor calls for changes in banking regulation
The Chancellor of the Exchequer, Alistair Darling, has called for changes in the way the UK’s banking system is regulated, in the light of the Northern Rock crisis.
Mr Darling put forward his views to MPs on the Treasury select committee during a questions session in which he stated that banks should be stopped from hiding […]
BoE report warns of further financial shocks
by Gill Montia
Story link: BoE report warns of further financial shocks
The Bank of England has published its Financial Stability Report in which it describes the US sub-prime mortgage crisis and ensuing global credit shortage as creating “the most severe challenge to the UK financial system for several decades”.
The report outlines events which began with homeowners in US suburbs struggling to pay their mortgages and goes […]
