Banks in Cyprus are due to re-open today, but the government is to impose a weekly limit on cash withdrawals in an attempt to prevent a bank run, says The Times. The paper says that the government was finalising strict capital controls last night while security firm G4S was deploying 180 guards to control queues at bank branches.
The Financial Services Authority (FSA) is to fine insurance giant Prudential up to £30m and censure its Chief Executive Officer Tidjane Thiam, writes The Telegraph. The paper says that the fine relates to Pru’s alleged failure to have notified the FSA ahead of its abortive bid for AIA in 2010.
The Financial Times reports that German banking group Deutsche Bank has put aside €500m to cover potential fines relating to the alleged rigging of LIBOR and is expected to settle with authorities by the end of the year at the earliest.
The Bank of England is expected to warn the banking industry today that it must raise billions more to fill a capital “black hole”, according to The Times. The paper says that Credit Suisse has estimated a shortfall of £38bn for the ‘Big Four’ banks alone.
The government watchdog, Office for Budget Responsibility, has claimed that George Osborne’s ‘Help to Buy’ scheme risks causing a new housing bubble as subsidies for mortgages would drive up property prices, reports The Guardian.
The amount of government bonds with triple-A statuses from the three biggest ratings agencies – Fitch, Moody’s and S&P – has fallen by over 60% since the financial crisis, according to the Financial Times.
The former head of the London Stock Exchange, Dame Clara Furse, has signed up to the Bank of England’s Financial Policy Committee, writes The Independent.