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Tuesday newspaper round-up: HBOS, Lloyds TSB, Bradford & Bingley
Thu, 20 Nov, 2008
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Tuesday newspaper round-up: HBOS, Lloyds TSB, Bradford & Bingley
Tue, 23 Sep 2008, 06:00:00
One of Washington's senior senators urged the
US Government
last night to block the $700 billion (£378 billion) rescue package for the banks, which would be the biggest bailout since the Great Depression.
Senator Richard Shelby, the leading Republican on the Senate Committee on Banking, Housing and Urban Affairs, said in a statement that the Treasury's proposal was "neither workable nor comprehensive". Fears that the intense political haggling will delay a vote and put a stop to the entire bailout triggered renewed sell-offs across equity and currency markets on both sides of the Atlantic yesterday, reports the Times.
The billions of pounds paid out in bonuses to City workers each year could come increasingly with strings attached if the
Financial Services Authority
(FSA) gets its way. Supervisors at the City regulator have started to scrutinise bank bonus schemes in the past few weeks to see whether they might encourage reckless behaviour. Those banks that fail to come up to scratch will have to reform their bonus arrangements or will be obliged by the FSA to hold additional capital, writes the Times.
Alistair Darling
on Monday announced an "urgent review" of banking regulation and a minister admitted the government had failed to impose sufficient controls on the City. The chancellor told Labour's conference in Manchester he had asked Lord Turner, new chairman of the Financial Services Authority, to look at the regulatory system and draw lessons from the turmoil that has hit world markets, reports the FT.
Andy Hornby, the
HBOS
chief executive, has been bombarded by e-mails from thousands of anxious employees worried about their jobs in the wake of the rescue takeover by
Lloyds TSB
. Mr Hornby revealed that he had received a flood of anxious messages as he wrote to staff insisting that surrendering to Lloyds was the right thing to do, writes the Times.
Three of Britain's biggest banks have been asked to prepare for "national service" by taking over
Bradford & Bingley
if a buyer for the struggling lender cannot be found.According to banking sources close to the authorities, a contingency plan is being drawn up to rescue B&B if it is threatened with a run on the bank. HSBC, Barclays and Santander - the Spanish owner of Abbey that is buying Alliance & Leicester - have been asked to play a role, reports the Telegraph.
Short-sellers
switched their attention from banks to consumer companies yesterday in response to the Financial Service Authority's decision to ban short-selling of financial shares and are said to have switched into consumer shares, targeting the housebuilders such as Taylor Wimpey and pub companies such as Enterprise, says the Telegraph.
Investors owning
Lehman Brothers
bonds face potential losses of nearly $110bn, reflecting the sharp reductions in the value of assets that are likely to be left to be paid out to creditors. In the week since Lehman Brothers, the fourth-largest investment bank in the US, filed for bankruptcy, the value of its bonds has plummeted, reports the FT,
Hedge funds
could have an unprecedented level of cash pulled out by investors this quarter, according to insiders, just as they faced millions of pounds of losses from last week's shock regulation of short selling, reports the Independent.
Related Newspaper Articles:
Bing & buy
-
Sun
Hornby: I accept responsibility for job fears at HBOS
-
The Herald
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