Any idiot can face a crisis - it's day to day living that wears you out.
Alistair Darling has welcomed the announcements that Royal Bank of Scotland (RBS) and Lloyds Banking Group are to sell off hundreds of branches.The chancellor said the sales, which had been demanded by the European Commission, were in the "best interest" of the wider UK banking sector. RBS will sell 318 branches while Lloyds will dispose of more than 600 branches over the next four years. The Tories say there is no guarantee the move will get credit flowing again.
Alistair Darling has welcomed the announcements that Royal Bank of Scotland (RBS) and Lloyds Banking Group are to sell off hundreds of branches.
The chancellor said the sales, which had been demanded by the European Commission, were in the "best interest" of the wider UK banking sector.
RBS will sell 318 branches while Lloyds will dispose of more than 600 branches over the next four years.
The Tories say there is no guarantee the move will get credit flowing again.
Alistair Darling hailed today's multibillion-pound shake-up of the state-owned banks as good value for taxpayers.In a statement to MPs in the Commons, the chancellor defended the controversial changes to the structure of Lloyds Banking Group and Royal Bank of Scotland, which could see the taxpayer stump up as much as £39bn and potentially create three new high-street banks.Under fire from the shadow chancellor, George Osborne, who called Britain's bank bailout a "world record", Darling said: "We are now able to achieve our objectives on financial stability and banking reform at a lower overall cost to the taxpayer."
Alistair Darling hailed today's multibillion-pound shake-up of the state-owned banks as good value for taxpayers.
In a statement to MPs in the Commons, the chancellor defended the controversial changes to the structure of Lloyds Banking Group and Royal Bank of Scotland, which could see the taxpayer stump up as much as £39bn and potentially create three new high-street banks.
Under fire from the shadow chancellor, George Osborne, who called Britain's bank bailout a "world record", Darling said: "We are now able to achieve our objectives on financial stability and banking reform at a lower overall cost to the taxpayer."
Nigeria's central bank has ordered the country's banking sector to report suspicious cash transactions from people involved in politics.The move is part of sweeping reforms made by central bank governor Lamido Sanusi to try and stop corruption. Mr Sanusi has sacked the heads of five banks top and brought fraud charges against several bank executives. The regulations are common elsewhere in the world since the 11 September 2001 terror attacks on the US.
Nigeria's central bank has ordered the country's banking sector to report suspicious cash transactions from people involved in politics.
The move is part of sweeping reforms made by central bank governor Lamido Sanusi to try and stop corruption.
Mr Sanusi has sacked the heads of five banks top and brought fraud charges against several bank executives.
The regulations are common elsewhere in the world since the 11 September 2001 terror attacks on the US.
Churchgoers will have to plug the deficit in the Church of England's pension scheme for clergy, according to an independent consultant.The scheme put all of its investments into shares, leading to a £360m deficit by the end of last year, research by consultant John Ralfe found. Most pension schemes mix their investments between shares, bonds and gilts to manage the risk. A number of UK pension schemes suffered from share price falls in 2008.
Churchgoers will have to plug the deficit in the Church of England's pension scheme for clergy, according to an independent consultant.
The scheme put all of its investments into shares, leading to a £360m deficit by the end of last year, research by consultant John Ralfe found.
Most pension schemes mix their investments between shares, bonds and gilts to manage the risk.
A number of UK pension schemes suffered from share price falls in 2008.
MADRID, Nov 3 (Reuters) - The Bank of Spain said on Tuesday that it has approved the takeover of the only Spanish bank to be bailed out during the financial crisis, Caja Castilla La Mancha (CCM). A savings bank from the region of Asturias, Cajastur, will take control of CCM if the general assemblies of both regional banks approve the terms of the deal, the Bank of Spain said in a statement.
General Motors (GM) has cancelled plans to sell a majority stake in its European car business Opel, including its UK brand Vauxhall.The US giant said in a statement that its board had made the decision because of "an improving business environment for GM over the past few months". GM had agreed to sell Opel and Vauxhall to Canadian car parts firm Magna. The Magna deal had the backing of the German government, which had pledged 4.5bn euros ($6.7bn; £4bn) of loans. GM added that it had also come to its decision because of the importance of Opel and Vauxhall to its global strategy
General Motors (GM) has cancelled plans to sell a majority stake in its European car business Opel, including its UK brand Vauxhall.
The US giant said in a statement that its board had made the decision because of "an improving business environment for GM over the past few months".
GM had agreed to sell Opel and Vauxhall to Canadian car parts firm Magna.
The Magna deal had the backing of the German government, which had pledged 4.5bn euros ($6.7bn; £4bn) of loans.
GM added that it had also come to its decision because of the importance of Opel and Vauxhall to its global strategy
General Motors, a dinosaur only a year ago, has emerged Phoenix-like from the ashes of bankruptcy. This week it surprised everyone by saying it will not after all sell Opel and Vauxhall, its main European operations. German politicians and union leaders, who thought they had won the tug-of-war over the sale to Canadian car parts maker Magna and Russian Sberbank, are shocked and dismayed. They should not be: although many obstacles remain, GM's decision is good for Europe's car industry. The imperative efficiently to dismantle Europe's overcapacity in car manufacturing is one that Germany has long been doing all it can to frustrate. Its government - with union leaders' support - was willing to help Magna and Sberbank's purchase to the tune of €4.5bn in loan guarantees for projected restructuring costs. This stitch-up defied commercial logic: the Belgian investment group RHJ, which GM at one point preferred, offered to make do with €3.2bn. But Magna seemed more pliant to German wishes that job cuts disproportionately happen elsewhere in Europe. This costly employment protection flagrantly breached the spirit of the European single market.
The imperative efficiently to dismantle Europe's overcapacity in car manufacturing is one that Germany has long been doing all it can to frustrate. Its government - with union leaders' support - was willing to help Magna and Sberbank's purchase to the tune of €4.5bn in loan guarantees for projected restructuring costs.
This stitch-up defied commercial logic: the Belgian investment group RHJ, which GM at one point preferred, offered to make do with €3.2bn. But Magna seemed more pliant to German wishes that job cuts disproportionately happen elsewhere in Europe. This costly employment protection flagrantly breached the spirit of the European single market.
And I think that protecting car manufacturers was a waste of stimulus money on the longer term...
Still, I wonder whether Merkel was briefed, because if she wasn't, it's a big "fuck you" from the US government.
Rep. Barney Frank, chairman of the House Financial Services Committee, told reporters today that he would make significant changes to a proposed government fund to help pay for any large financial firms that would be seized and dismantled to prevent major damage to the economy. As for the resolution fund, Frank said he would require firms to pay into it ahead of any use, as is now done by banks with the Federal Deposit Insurance Corp. fund that helps insure customer deposits. That way the money would be in place to cover the costs of seizing and dismantling a major financial firm, limiting the outlay of government money. Frank also said he favored "some congressional involvement" if the Treasury Department needed to lend any money to the fund to cover a shortfall before more money could be collected from the industry. "It will not be an unfettered executive decision," Frank said. He suggested allowing any member of Congress to request a vote to stop a disbursement of taxpayer money into the fund. Rep. Brad Sherman (D-Sherman Oaks) has criticized the legislation for creating what he called a permanent, unlimited version of the $700-billion bailout fund. Though he said Frank was moving in the right direction with the proposed changes, he wants more details. Sherman said there was a major difference between a congressional vote to prevent the disbursement of money and one authorizing it. Under the first option, a bill to prevent Treasury from lending money to the fund could be vetoed by the president, which would require a two-thirds majority of both houses to override. Requiring Treasury to seek congressional approval for any disbursement would mean that only a simple majority of both Houses would be needed to stop it. He said the committee debate on the bill would be important in structuring that mechanism. "The less support there is for unlimited permanent bailout authority, the better the bill will be," Sherman said.
As for the resolution fund, Frank said he would require firms to pay into it ahead of any use, as is now done by banks with the Federal Deposit Insurance Corp. fund that helps insure customer deposits. That way the money would be in place to cover the costs of seizing and dismantling a major financial firm, limiting the outlay of government money. Frank also said he favored "some congressional involvement" if the Treasury Department needed to lend any money to the fund to cover a shortfall before more money could be collected from the industry.
"It will not be an unfettered executive decision," Frank said. He suggested allowing any member of Congress to request a vote to stop a disbursement of taxpayer money into the fund.
Rep. Brad Sherman (D-Sherman Oaks) has criticized the legislation for creating what he called a permanent, unlimited version of the $700-billion bailout fund. Though he said Frank was moving in the right direction with the proposed changes, he wants more details. Sherman said there was a major difference between a congressional vote to prevent the disbursement of money and one authorizing it. Under the first option, a bill to prevent Treasury from lending money to the fund could be vetoed by the president, which would require a two-thirds majority of both houses to override.
Requiring Treasury to seek congressional approval for any disbursement would mean that only a simple majority of both Houses would be needed to stop it. He said the committee debate on the bill would be important in structuring that mechanism. "The less support there is for unlimited permanent bailout authority, the better the bill will be," Sherman said.
Under the terms of the plan, announced in September, Ireland will pay €54bn to take over bank debt with a book value of €77bn. The initiative is intended primarily to free the banks of their toxic asset burden and encourage lending to small businesses, according to finance minister Brian Lenihan. But contrary to initial appearances, banks won't be taking a haircut on the assets so much as they will be getting something of a hair transplant, as one person familiar with the plan put it. Consider this: Nama will issue the banks with bonds and subordinated debt to the value of €54bn to take over both performing and distressed loans, many of which were made to the country's largest property developers and collateralised by what one person described as a "rag bag mix of property, including fields in the middle of nowhere that don't stand a chance of being developed". The book value of these loans may be €77bn, but as of September and according to comments by Lenihan, the market value of the portfolios was closer to €47bn. So you can look at Nama in either of two ways. On the one hand, the banks involved will be taking a haircut of around 30 per cent on the book value of the loans. On the other, the government is paying the banks a premium of about 13 per cent versus the September value of the loans.
Under the terms of the plan, announced in September, Ireland will pay €54bn to take over bank debt with a book value of €77bn. The initiative is intended primarily to free the banks of their toxic asset burden and encourage lending to small businesses, according to finance minister Brian Lenihan.
But contrary to initial appearances, banks won't be taking a haircut on the assets so much as they will be getting something of a hair transplant, as one person familiar with the plan put it.
Consider this: Nama will issue the banks with bonds and subordinated debt to the value of €54bn to take over both performing and distressed loans, many of which were made to the country's largest property developers and collateralised by what one person described as a "rag bag mix of property, including fields in the middle of nowhere that don't stand a chance of being developed".
The book value of these loans may be €77bn, but as of September and according to comments by Lenihan, the market value of the portfolios was closer to €47bn.
So you can look at Nama in either of two ways. On the one hand, the banks involved will be taking a haircut of around 30 per cent on the book value of the loans. On the other, the government is paying the banks a premium of about 13 per cent versus the September value of the loans.
.... a triffid....
What do you think? "Any economic unit can emit money. The serious problem is to get it accepted" Hyman Minsky
