The Mail
Says that “Radical action” is needed to contain the world’s sprawling £30tn ‘shadow banking’ industry and prevent another financial crisis, the City watchdog said last night. Lord Turner, chairman of the Financial Services Authority, said shadow banking is ‘potentially very unstable’ and required ‘permanent surveillance’. The proposed clamp down on the industry, which includes hedge funds and other players outside the regulated banking system, will cause alarm in some quarters of the Square Mile.
The Times
Headlines; Goldman Sachs gets both barrels as banker quits…Jobs squeeze gives rise to part-time generation…Tesco’s British chief executive is poised to quit…Plan to overhaul bonuses at bailed-out banks
Reports that Fitch said it was putting Britain on “negative outlook” until at least 2014 as it argued a renewed crisis in the Eurozone or lower than predicted growth could undermine the AAA rating. The decision is embarrassing for the Government, coming the week before the Budget and the day after George Osborne suggested Britain’s finances were so stable that the Government could issue 100 year bonds.
OpCapita has offered to buy out Game Group’s lenders. The move would see the distressed investor, which earlier this year acquired Comet for £2, take control of Game. The Times understands that suppliers’ outstanding bills will be paid in fuill as part of the OpCapita package. Game is in limbo, with just 11 days before its quarterly rent bill is due. Key suppliers, including Nintendo, Capcom and Electronic Arts, are withholding key releases and lenders, led by the Royal Bank of Scotland, are reluctant to offer any additional support
The Daily Telegraph
Headlines; Tesco’s UK chief Richard Brasher to step down…FSA called to account on interest swap concerns…Welcome to the muppet show at Goldman Sachs…Heiress Daphne Guinness is MF Global creditor…BHP Billiton picks London for trading units… Icelandic bank Glitnir to repay UK councils… Part-time Britain helps slow jobless rise…Investors must have say on unjustifiable pay…Barclays duo enjoy £20m payday…RBS ‘not competitive’ on top bankers’ pay …BP alerted to ‘bribery’ at its tanker divisio.
Oil Behemoth BP are investigating a “serious case of bribery and corruption” alleged to have been taking place in the company’s tanker chartering division. Details of the allegations are contained in a letter written to chief executive Robert Dudley by a whistleblower describing himself only as a “BP employee”. The Letter, purports to detail how the alleged corruption has been going on at BP for over five years. The allegation centres on the relationship between a senior BP employee and one of the company’s suppliers. Both parties are named in the letter.
BHP Billiton, plan to bring key trading operations to the UK, a move seen as a vote of confidence in London’s position as a global centre for the natural resources industry. The FTSE 100 miner is moving 70 jobs to London as it relocates its marketing operations from The Hague. BHP’s marketers are responsible for selling the commodities its mines produce to its customers. BHP said the move, which will swell its London workforce to 250, represented an opportunity to consolidate its presence here and access the UK’s resource industry and trading talent.
