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Wednesday newspaper round-up: Bank bail-out, IMF, Ben Bernanke
Thu, 20 Nov, 2008
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Wednesday newspaper round-up: Bank bail-out, IMF, Ben Bernanke
Wed, 8 Oct 2008, 06:11:00
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Royal Bank of Scotland 5.5% Cum. Prf.
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Royal Bank of Scotland Ser 1 Non Cumulative $ Preference $0.01
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Royal Bank of Scotland Ser 2 Non Cumulative $ Preference $0.01
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Halifax 12% Perp Sub Bds
11000.00p
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Halifax 13 5/8% Perp Sub Bds
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Halifax 8 3/4% Perp Sub Bds
8500.00p
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HBOS 9 1/4% Non-Cumulative Irrd Preference Shares £1
92.50p
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HBOS 9 3/4% Non-Cumulative Irrd Preference Shares £1
97.00p
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HBOS Fxd to Fltg Rte Non-cum Pref Shares
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HBOS PLC Non Cum 6.0884% Prf GBP1
58250.00p
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HBOS
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Lloyds TSB Euro Step-up Non Cum Pfd Secs
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Barclays 7.875% Und Sub Bds
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Taxpayers will be committed today to providing more than £50bn to bail out high street banks in an attempt to avert a cataclysmic failure of confidence.
Alistair Darling
was due to tell the City in an early morning announcement today that the sum will be available for "investment" in banks that have demanded help from the Government, writes the Times.
Britain's banks remained divided almost to the last yesterday on plans for a massive government recapitalisation of the industry but were eventually forced to accept that the initiative was inevitable.
Barclays
has consistently insisted that its capital position is strong enough to withstand market and economic pressures. But
Royal Bank of Scotland
, whose shares were battered yesterday, is thought to believe that the market now requires higher core capital ratios to feel secure about banks, reports the Independent.
The
IMF
has called on Darling to set up £100bn "toxic waste" fund before recapitalising banks. It is a sign of the times that one of the world's most free market institutions is now calling for the biggest and most dramatic international bail-out in history, writes the Telegraph.
Ben Bernanke
, Chairman of the Federal Reserve, paved the way last night for an imminent cut in US interest rates as he sounded a warning that world financial turmoil will inflict a deeper and longer downturn on America, reports the Times.
The Bank of England's
Monetary Policy Committee
is widely expected to reduce interest rates tomorrow by at least 0.25%, but Philip Green, the owner of the retailer Bhs, said: "Fundamentally, if there is an interest rate cut in the short term, other than sentiment, it is not going to massively help the consumer," the Independent reports.
Pubs and property tycoon Robert Tchenguiz has sold his 29.7% stake in pub group
Mitchells & Butlers
(M&B) to a mystery buyer. The disposal of the £190m stake could be announced as early as this morning. It was not clear last night whether Mr Tchenguiz had sold the stake to a single party or a group of investors, writes the Telegraph.
AIG
was warned by regulators and auditors about a lack of transparency in the months before the collapse of the US insurance giant, it surfaced yesterday as former company executives were subjected to a public grilling by politicians. News of the warnings came as it emerged that AIG spent $440,000 (£250,000) hosting a corporate retreat for insurance salesmen at a top Californian coastal resort a week after accepting an $85bn emergency loan from the US government, according to the Telegraph.
General Motors
is cutting production at most of its 10 manufacturing plants in Europe in a stark sign of the growing toll the credit crisis is taking on demand in the real economy. GM said on Tuesday it was halting production or cutting shifts at the plants for between 10 days and three weeks in response to lower sales of its Opel, Vauxhall and Saab cars, reports the Financial Times.
Woolworths'
woes have deepened heading into the Christmas period as it emerged that the last of the big three credit insurers withdrew cover for suppliers of the retailer amid growing concerns over the high street chain's financial health. French-owned Coface withdrew its cover to the retailer's suppliers, following in the footsteps of Euler Hermes and Atradius, which had already taken similar steps, writes the Financial Times.
Thousands of
savers
with deposits of more than £50,000 have been moving their money to the biggest financial institutions over the last few days, as smaller lenders have begun to come under greater financial pressure, reports the Independent.
John McCain
and
Barack Obama
met Tuesday night for a televised debate. Mr Obama attacked the economic policies of the Bush administration that he said had been supported by McCain. The financial crisis was "a final verdict on the failed economic policies of the past eight years". McCain went for lower taxes and energy independence to top his rescue plan and said he would immediately instruct the secretary of the Treasury to buy up threatened home loans, reports the Financial Times.
Related Newspaper Articles:
Royal and HBOS plunge ahead of expected recapitalisation
-
The Herald
£50bn bailout to save Britain's banks (but will it be enough to save us?)
-
The Independent
British taxpayer to be tied into £50bn bank bailout
-
Times
£50bn bid to save UK banks
-
Guardian
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