Shareholders have got off lightly

first_img KCS-content Shareholders have got off lightly Tags: NULL Tuesday 10 August 2010 8:37 pm whatsapp Share whatsapp Read This NextFresh Fruit Sushi: Recipes Worth CookingFamily ProofCreamy Pumpkin Soup: Delicious Recipes Worth CookingFamily ProofYoga for Beginners: 3 Different Types of Yoga You Should TryFamily ProofHiking Gadgets: Amazon Deals Perfect For Your Next AdventureFamily ProofChicken Bao: Delicious Recipes Worth CookingFamily ProofWhat to Know About ‘Loki’ Ahead of Disney+ Premier on June 9Family ProofBack on the Rails for Summer New York to New Orleans, Savannah and MiamiFamily ProofCheese Crostini: Delicious Recipes Worth CookingFamily ProofBaked Sesame Salmon: Recipes Worth CookingFamily Proof Show Comments ▼ THANK god for that. International Power (IP) shareholders have been given a welcome reprieve, after the majority of the company was snapped up by GDF Suez. Truth be told, there was trouble ahead for IP if it decided to go it alone. Cheer at the new investment grade credit rating belies the fact that IP’s debt pile was looking increasingly troublesome, with pressures mounting from 2012 onwards. Debt was a particular worry at the Hazelwood brown coal powerstation in Australia. It had to restructure its £415m worth of non-recourse debt on unfavourable terms and with an uncomfortably close maturity date of June 2012, thanks to uncertainty over Australia’s carbon charging programme. IP should now be able to get more headroom when it renegotiates terms in two years’ time. Similarly, its Italian wind power assets are looking less attractive, after the deficit-strapped government withdrew a subsidy for renewable energy providers. So while investors might be underwhelmed by the amount of potential cost savings, the truth is that IP would have struggled to increase its share price to the post-merger talks level if it had rebuffed GDF. Investors really have got off lightly. last_img read more

Foster’s rises on the hopes of £7bn bid battle

first_img Share Tags: NULL KCS-content A BIDDING war could break out for part of the Foster’s Group brewing empire after Asahi, the Japanese lager maker, reportedly hired two investment banks to advise on an approach.Asahi would be up against London-listed SABMiller in the running for the £7bn beer-brewing arm of the Foster’s business, which produces brands such as Victoria Bitter. Foster’s has effectively put the operation on the block by saying it will de-merge it from its troubled wine unit in the first half of next year.Shares in the Australian conglomerate leapt 7.6 per cent, or 44 cents, to A$6.26 (£3.60) yesterday – their highest level in two years – as speculation of a takeover battle built.Both SABMiller and Asahi have underlined their intention to grow by acquisition. But both have refused to comment on the Foster’s business. whatsapp Read This Next’A Quiet Place Part II’ Sets Pandemic Record in Debut WeekendFamily ProofHiking Gadgets: Amazon Deals Perfect For Your Next AdventureFamily ProofIndian Spiced Vegetable Nuggets: Recipes Worth CookingFamily ProofAmazon roars for MGM’s lion, paying $8.45 billion for studio behind JamesFamily ProofYoga for Beginners: 3 Different Types of Yoga You Should TryFamily ProofBack on the Rails for Summer New York to New Orleans, Savannah and MiamiFamily ProofTortilla Mango Cups: Recipes Worth CookingFamily ProofWhat to Know About ‘Loki’ Ahead of Disney+ Premier on June 9Family ProofCheese Crostini: Delicious Recipes Worth CookingFamily Proofcenter_img Monday 23 August 2010 8:00 pm Show Comments ▼ by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailNoteabley25 Funny Notes Written By StrangersNoteableyZen HeraldThe Truth About Why ’40s Actor John Wayne Didn’t Serve In WWII Has Come To LightZen HeraldBetterBe20 Stunning Female AthletesBetterBeCrowdy FanShe Didn’t Know Why Everyone Was Staring At Her Hilarious T-ShirtCrowdy Fanautooverload.comDeclassified Vietnam War Photos The Public Wasn’t Meant To Seeautooverload.comAtlantic MirrorA Kilimanjaro Discovery Has Proved This About The BibleAtlantic MirrorTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastElite HeraldKate Middleton Dropped An Unexpected Baby BombshellElite Herald Foster’s rises on the hopes of £7bn bid battle whatsapplast_img read more

Tube bosses to meet with unions to avoid further strikes by staff

first_img by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastNoteabley25 Funny Notes Written By StrangersNoteableyMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailZen HeraldNASA’s Voyager 2 Has Entered Deep Space – And It Brought Scientists To Their KneesZen HeraldOceandrawRemember Him? Wait ‘Till You See Him NowOceandrawWork from Home | Search AdDo You Speak English? Work a USA job from home in United StatesWork from Home | Search AdSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesWorld of sportTop 20 Healthiest Cities in America in 2021World of sport Tube bosses to meet with unions to avoid further strikes by staff Show Comments ▼ Tags: NULL TALKS to avoid another set of crippling strikes by Tube staff are set to take place next week.Senior management from the London Underground (LU) will meet with trade unions RMT and the Transport Salaried Staffs’ Association (TSSA) at conciliation service Acas in a bid to soothe a heated dispute over proposed job cuts to station staff.The two sides are currently at odds over plans by LU to cut up to 800 station jobs.If the negotiations are successful, the unions could call off three more planned strike periods, which are currently set for 3 October, 2 November and 28 November.Earlier this month RMT and TSSA caused chaos on London’s transport network after Tube workers launched industrial action. whatsappcenter_img Wednesday 15 September 2010 8:18 pm Share whatsapp Read This Next’A Quiet Place Part II’ Sets Pandemic Record in Debut WeekendFamily ProofHiking Gadgets: Amazon Deals Perfect For Your Next AdventureFamily ProofYoga for Beginners: 3 Different Types of Yoga You Should TryFamily ProofBack on the Rails for Summer New York to New Orleans, Savannah and MiamiFamily ProofAmazon roars for MGM’s lion, paying $8.45 billion for studio behind JamesFamily ProofIndian Spiced Vegetable Nuggets: Recipes Worth CookingFamily ProofTortilla Mango Cups: Recipes Worth CookingFamily ProofWhat to Know About ‘Loki’ Ahead of Disney+ Premier on June 9Family ProofCheese Crostini: Delicious Recipes Worth CookingFamily Proof KCS-content last_img read more

Bonuses for hedge fund IT staff jump

first_img whatsapp Bonuses for hedge fund IT staff jump Thursday 7 October 2010 8:03 pm KCS-content Read This Next’Kevin Can F**k Himself’: Here’s Why Only Allison and Patty Are SeenThe Wrap20 Stars Who’ve Posted Nude Selfies, From Lizzo to John Legend (Photos)The Wrap’Batwoman’: Wallis Day on Circe’s ‘Deranged’ Warpath and the Key to SavingThe Wrap’Godzilla vs Kong’ Reaches $100 Million in US After Grossing $250,000 inThe WrapJoin a Conversation on ‘Cancel Culture in Comedy’ with Maz Jobrani, SkyeThe WrapAnya Taylor-Joy, Ralph Fiennes Join Searchlight’s Dark Comedy ‘The Menu’The WrapAfter ‘Black Widow,’ Kevin Feige Leaves Open the Possibility of OtherThe Wrap’Pose’ Creator Steven Canals on Life After His Groundbreaking Show: ‘I’mThe Wrap’The Boys’ Star Aya Cash Took Inspiration From YouTube, TikTok and SteveThe Wrap Show Comments ▼ whatsapp Tags: NULL Hedge fund IT staff have seen their bonuses double in the last year, according to new research.ReThink Recruitment says software developers with experience in algorithmic trading platforms – a form of automated high volume trading – can now expect 50 per cent bonuses, up from around 25 per cent last year.High-flying IT staff have also seen their base salary rise to around £120,000, a 15 per cent hike year-on-year. Contractors can now earn £750 a day, compared to £600 a day at the start of the year.Fhamid Malik, head of financial services at ReThink said: “Renewed investor confidence has prompted a surge in business volumes. Funds are now locked in an arms race for the best systems to steal an edge on competitors.“This has fuelled demand for IT staff, as funds look for the latest innovative platforms to mitigate risk and manage the market impact of trades. “The last six months have also witnessed the return of guaranteed bonuses into contracts, which almost completely disappeared during the credit crunch.”Fhamid Malik adds: “For those IT staff with the right skills this is an ideal time to secure a lucrative contract.“These funds are locked in a perpetual war to produce the fastest and most accurate trading platforms. Employers are now willing to pay a premium of around 20 per cent for senior IT staff that have successfully developed and implemented bespoke trading systems before.”ReThink says demand for IT staff is not limited to London, with several leading funds having recently moved part of their operations to Geneva and Zurich. Meanwhile, US Treasury secretary Timothy Geithner wrote to French economy minister Christine Lagarde earlier this week warning her against curbing foreign hedge funds in Europe as a row with Washington over new EU controls escalated.The correspondence increases pressure on Paris to make concessions on new controls for private equity and hedge funds. Officials said France’s position had antagonised Washington, which is worried that American hedge funds will be blocked from Europe. Sharelast_img read more

Sale of Royal Mail to include biggest ever staff share plan

first_img Share Sale of Royal Mail to include biggest ever staff share plan Wednesday 13 October 2010 8:05 pm THE plan to privatise the Royal Mail will see the largest employee share scheme in history, Vince Cable said yesterday as he published the Postal Services Bill. Cable said a guaranteed ten per cent of the newly-privatised Royal Mail would ultimately be reserved for the service’s current 150,000 staff, all of whom would have the right to buy into the business. It would be the “largest share ownership scheme within a privatised company in history” said Ed Davey, the minister for employment relations, consumer and postal affairs, who will oversee the bill’s passage through parliament. The largest employee share scheme to date was in 1984 when British Telecom was listed on the stock market. Its 100,000 employees were able to buy five per cent of the new company.If it is carried out in the same way as previous schemes, staff will be offered shares at a preferential price through pay-as-you-earn schemes. The employee share scheme will be administered separately by the government before the business is sold to a buyer or floated on the London stock exchange. KCS-content Show Comments ▼ by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryNoteabley25 Funny Notes Written By StrangersNoteableyTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBrake For ItThe Most Worthless Cars Ever MadeBrake For ItBetterBe20 Stunning Female AthletesBetterBemoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comBeach RaiderMom Belly Keeps Growing, Doctor Sees Scan And Calls CopsBeach Raidercenter_img whatsapp whatsapp Read This NextRicky Schroder Calls Foo Fighters’ Dave Grohl ‘Ignorant Punk’ forThe WrapCNN’s Brian Stelter Draws Criticism for Asking Jen Psaki: ‘What Does theThe WrapDid Donald Trump Wear His Pants Backwards? Kriss Kross Memes Have AlreadyThe WrapHarvey Weinstein to Be Extradited to California to Face Sexual AssaultThe Wrap’Sex and the City’ Sequel Series at HBO Max Adds 4 More ReturningThe WrapPink Floyd’s Roger Waters Denies Zuckerberg’s Request to Use Song in Ad:The Wrap’The View’: Meghan McCain Calls VP Kamala Harris a ‘Moron’ for BorderThe WrapNewsmax Rejected Matt Gaetz When Congressman ‘Reached Out’ for a JobThe Wrap2 HFPA Members Resign Citing a Culture of ‘Corruption and Verbal Abuse’The Wrap Tags: NULLlast_img read more

US jobs data adds to likelihood of QE

first_img US jobs data adds to likelihood of QE Show Comments ▼ NEW claims for unemployment benefits fell more than expected last week, but not enough to suggest much improvement in the distressed labour market.Initial claims for state unemployment benefits fell 23,000 to a seasonally-adjusted 452,000, the Labour Department said yesterday. Analysts had expected a drop to 455,000.Despite the fall, which also saw the unwinding of the prior week’s administrative related-jump, claims remain above levels usually associated with a strong job market recovery. The government revised the prior week’s figure up to 475,000.Ellen Beeson Zenter, senior US macroeconomist at the Bank of Tokyo-Mitsubishi said: “While jobless claims do seem to be on a downward trend, it can hardly be classified as pronounced and claims hovering around the 450,000 mark implies that little or no job growth exists.”Separately, October’s weak US Philadelphia Fed manufacturing index highlights that the manufacturing recovery is fading fast.The unemployment and the manufacturing data added to the likelihood that the Federal Reserve will ease monetary policy further next month. whatsapp Thursday 21 October 2010 8:44 pm whatsapp Share KCS-content More From Our Partners Police Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgI blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.comMatt Gaetz swindled by ‘malicious actors’ in $155K boat sale boondogglenypost.com Tags: NULLlast_img read more

London reaches 20-year low for development

first_img Read This Next’A Quiet Place Part II’ Sets Pandemic Record in Debut WeekendFamily ProofHiking Gadgets: Amazon Deals Perfect For Your Next AdventureFamily ProofYoga for Beginners: 3 Different Types of Yoga You Should TryFamily ProofBack on the Rails for Summer New York to New Orleans, Savannah and MiamiFamily ProofAmazon roars for MGM’s lion, paying $8.45 billion for studio behind JamesFamily ProofIndian Spiced Vegetable Nuggets: Recipes Worth CookingFamily ProofNew England Patriots’ Cam Newton says no extra motivation from Mac Jones’SportsnautTortilla Mango Cups: Recipes Worth CookingFamily ProofWhat to Know About ‘Loki’ Ahead of Disney+ Premier on June 9Family Proof CENTRAL London’s construction level is at a 20-year low, with just 2.7m square feet under development.Overall development is down by almost 70 per cent on this time last year, according to the latest Crane Survey research by property agency Drivers Jonas Deloitte.The report says this year and next will see the lowest level of new commercial completions on record as the hangover from recession continues.But it predicted a flurry of new development to start next year as the construction slow-down leads to a rise in rents.The report points out the City of London has seen no new construction starts in the last twelve months – the first time this has happened since the firm published its first Crane Survey more than 20 years ago.However, it predicts that office rents in London will have risen by a more than a quarter over 2010 as new delivery dries up, with developers now hurriedly dusting off plans and purchasing sites ready to start construction next year. The agency warns there is a real possibility of the market seeing an oversupply of space in 2014 as new developments are completed and the market swings to the other extreme. whatsapp London reaches 20-year low for development whatsapp Tags: NULLcenter_img KCS-content by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastZen HeraldNASA’s Voyager 2 Has Entered Deep Space – And It Brought Scientists To Their KneesZen HeraldTaonga: The Island FarmThe Most Relaxing Farm Game of 2021. No InstallTaonga: The Island FarmAdventure CrunchHere Are the Most Famous Pro Wrestlers From the Past TodayAdventure CrunchFinance BLVDThis Star from ‘Gilligan’s Island’ is 101 & lives a humble life nowFinance BLVDArticles StoneLittle Boy Brings $2 Painting To Antiques Road Show, Not Realizing Its WorthArticles Stonethedelite.comNetflix Cancellations And Renewals: 2021 Updatethedelite.comReporter CenterBrenda Lee: What Is She Doing Now At 76 Years of Age?Reporter Center Monday 22 November 2010 6:03 am Show Comments ▼ Sharelast_img read more

M&B boosts its profits but holds dividend

first_img KCS-content More From Our Partners Inside Ashton Kutcher and Mila Kunis’ not-so-average farmhouse estatenypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgMark Eaton, former NBA All-Star, dead at 64nypost.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.org Share whatsapp PUB and restaurant group Mitchells & Butlers boosted full-year pre-tax profits by 26 per cent to £169m, but a £300m property write-off pushed it to a pre-tax loss, it reported yesterday.The owner of bar brands such as All Bar One, O’Neill’s, and Harvester saw 1.1 per cent revenue growth to £1.98bn over the year, but recorded an overall £84m loss, down from a £4m profit the previous year, due to the writedown.As a result, it will not reinstate its dividend again this year, after suspending it in 2008 due to difficult trading conditions. It will not commit to paying one in 2011. “We have delivered a very good set of results in challenging economic conditions,” said chief executive Adam Fowle.The group is eight months into a restructuring to turn it from a drink-led to a food-led business, which will focus on the casual dining market.In the past year it has sold 49 of its non-core “wet-led” pubs and bought 22 Ha Ha Bar and Grill sites for £19.5m.It has also reduced net debt by almost £300m, to £2.3bn, cutting its interest bill by £13m to £147m.Analysts reacted positively to the results, with both Evolution Securities and KBC Peel Hunt recommending the share as a “buy”. “The company now has a very strong strategy,” said Paul Hickman of KBC Peel Hunt.He added: “There’s a lot of brand strength there; it is much more focused than before.”However, shares fell about 2.6 per cent to 344.6p. by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesWanderoamIdentical Twins Marry Identical Twins – But Then The Doctor Says, “STOP”WanderoamNoteabley25 Funny Notes Written By StrangersNoteableyZen HeraldNASA’s Voyager 2 Has Entered Deep Space – And It Brought Scientists To Their KneesZen HeraldHistorical GeniusHe Was The Smartest Man Who Ever Lived – But He Led A Miserable LifeHistorical GeniusMagellan TimesThis Is Why The Roy Rogers Museum Has Been Closed For GoodMagellan Timescenter_img Tuesday 23 November 2010 7:22 pm M&B boosts its profits but holds dividend Tags: NULL Show Comments ▼ whatsapplast_img read more

Europe’s governments have put all their chips into rescuing the banks

first_img Share Tags: NULL whatsapp Thursday 2 December 2010 7:09 pm More From Our Partners Russell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgInside Ashton Kutcher and Mila Kunis’ not-so-average farmhouse estatenypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgWhy people are finding dryer sheets in their mailboxesnypost.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.comMatt Gaetz swindled by ‘malicious actors’ in $155K boat sale boondogglenypost.comMark Eaton, former NBA All-Star, dead at 64nypost.comFlorida woman allegedly crashes children’s birthday party, rapes teennypost.com980-foot skyscraper sways in China, prompting panic and evacuationsnypost.comUK teen died on school trip after teachers allegedly refused her pleasnypost.comKamala Harris keeps list of reporters who don’t ‘understand’ her: reportnypost.comConnecticut man dies after crashing Harley into live bearnypost.comKiller drone ‘hunted down a human target’ without being told tonypost.com Show Comments ▼ Europe’s governments have put all their chips into rescuing the banks center_img whatsapp THE THIRD phase of the financial crisis has become acute. In the first phase, from July 2007 to September 2008, certain money markets seized up, costs of credit for financial institutions rose, and a series of such institutions (e.g. Northern Rock, Bear Stearns) came under pressure. Phase one ended, and phase two began in September 2008 with the nationalisation of Fannie Mae and Freddie Mac. This event, in which equity-holders were wiped out and bondholders spared, ended all prospect of under-capitalised financial institutions being recapitalised by private sector decision-making (through some combination of equity injections and debt-equity swaps). The immediate result was the bankruptcy of Lehman Brothers and other financial institutions. Governments around the Western world foolishly and hubristically decided that, rather than imposing losses on bondholders, they would recapitalise firms themselves and offer sovereign guarantees to bank bonds. This exercise in denial transferred the massive losses of the banking sector onto the balance sheets of governments.Phase three saw governments themselves dragged down by these sovereign guarantees, beginning with Greece (the Dubai crisis of November 2009 was slightly different in nature, and I won’t explore it here). Greece was intrinsically distressed because the government was over-borrowed. But if other Eurozone governments had not found their balance sheets stretched by guarantees to their banks, the Greek crisis would not have occurred in the same way, because there would have been no serious doubt that other Eurozone members would assist the Greeks. The Greek crisis was an indirect result of the guarantees given to the banks. A more direct example is Ireland, where the sovereign, in itself, was not particularly over-borrowed. The Irish problem was a problem of the Irish banking sector, and that the costs to the Irish sovereign of supporting that banking sector were more than the sovereign could bear.BANKS HOLD SOVEREIGN DEBTIn both the Greek and Irish cases a further banking crisis-related issue was that banks are major holders of government debt. So if governments were to default, banks would suffer losses. In a context in which it has (quite wrongly) come to be unthinkable that any bank should go bust, losses for banks are regarded as dangerous. If Portugal were to default, or even if its bonds had to be marked down significantly, then banks, particularly Spanish banks, would make losses. Since Spanish banks could already be in trouble, dragging down the Spanish government, this is regarded as dangerous.It should be plain now that the financial crisis was not the result of some temporary technical glitch in markets, or some manipulative speculators. There are real losses involved, reflecting real changes to the long-term expected growth paths of economies. During the 2000s many people lent out a great deal of money on the basis of wrong predictions about future growth paths. That included holders of bank bonds, government bonds, and bank deposits. The bank bondholders and government bondholders particularly included pension funds. Of course, depositors and those saving for pensions are ordinary people. They are ordinary people that had invested in products – banks and pensions – that had lost so much money that in certain cases they could not service their debts. So some of these depositors and pension savers should have lost some of their money – specifically, those that had invested in the wrong companies.It was not in Britain’s interest to bail out Ireland. That was simply part of the overall strategy of denial. If Ireland had not been bailed out, it would have imposed losses on senior bondholders. The bondholders that lost money would have included foreign bondholders. Governments in those countries might be forced to provide extra capital injections into their banks if they were not to accept losses for their bondholders. Taxpayers in smaller states, experiencing losses in this way, might wonder why they were supporting their foreign bondholders when taxpayers abroad allowed their bondholders to lose. The whole denial strategy, refusing to allow bondholders to lose money, might have begun to unwind.CASCADING LOSSES FOR BANKSWhere do we go now? One likely route is that we inflate. The consequence of inflation will be that holders of fixed income investments – depositors and bondholders – will lose some of their money. It would have been better if only those that had deposited in the wrong institutions had lost money. But if it is politically impossible that some depositors will lose, then it is politically easy for all of them to lose – through high inflation. (Losses for depositors in particular are quite likely to be materially greater under inflation than any plausible losses they could have made if banks had entered administration.) Another possibility is that the whole strategy does indeed unwind, with losses on bondholders in certain states cascading into losses for many banks. Because states chose to guarantee bonds, bank failures will now constitute sovereign defaults. That could involve chaos in certain countries – possibly including constitutional dislocations (e.g. in Greece or Portugal). One extreme version of this scenario would be that German taxpayers decide (quite justifiably) that the whole outrageous farrago has gone far enough and the Germans give up on the euro. That could potentially result in a significant reversal of EU integration, perhaps including a withdrawal, over time, to a core of seven or eight member states. That may sound somewhat overblown, but is precisely what Merkel, Van Rompuy and Lagarde have warned of in recent weeks. It is not out of the question any more. That in turn would involve the unwinding of the denial strategy across much of Europe, with bank bondholders losing out. Under that scenario, it would be difficult for the British sovereign to avoid coming under pressure, despite the good work the Coalition has done in addressing the deficit. It is thus extremely urgent that we devise credible mechanisms in the UK for imposing losses on the bondholders of our banks in orderly special administration regimes.More likely, however, is that, having committed so much to the strategy (having gone “all in”), wealthier governments now see it through and provide huge bailout funds to support Portugal, Belgium and perhaps even Spain in the short term, but then impose losses from 2013 onwards, when the German constitutional court has already clarified that a new haircutting procedure will be required. The only way the euro can survive is if the Germans get their new treaty, with credible mechanisms for imposing losses on bondholders and high degrees of fiscal coordination. It’s ultimately still about the politics – just. But only just.Andrew Lilico is chief economist at Policy Exchange by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastMoneyPailShe Was The Dream Girl In The 90s, This Is Her NowMoneyPailSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesElite HeraldExperts Discover Girl Born From Two Different SpeciesElite Heraldmoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comZen HeraldNASA’s Voyager 2 Has Entered Deep Space – And It Brought Scientists To Their KneesZen HeraldAlphaCute30 Rules That All “Hells Angels” Have To FollowAlphaCuteTaonga: The Island FarmThe Most Relaxing Farm Game of 2021. No InstallTaonga: The Island Farm KCS-content last_img read more

City lawyers slam OFT reform

first_img City lawyers slam OFT reform KCS-content Read This Next’A Quiet Place Part II’ Sets Pandemic Record in Debut WeekendFamily ProofHiking Gadgets: Amazon Deals Perfect For Your Next AdventureFamily ProofBack on the Rails for Summer New York to New Orleans, Savannah and MiamiFamily ProofIndian Spiced Vegetable Nuggets: Recipes Worth CookingFamily ProofAmazon roars for MGM’s lion, paying $8.45 billion for studio behind JamesFamily ProofYoga for Beginners: 3 Different Types of Yoga You Should TryFamily ProofNew England Patriots’ Cam Newton says no extra motivation from Mac Jones’SportsnautChicken Bao: Delicious Recipes Worth CookingFamily ProofCheese Crostini: Delicious Recipes Worth CookingFamily Proof Share The City of London Law Society has warned the government that merging the Office of Fair Trading with the Competition Commission could damage efficiency and fairness. The society, which counts City law firms Allen & Overy and Norton Rose among its members, wrote to the Department of Business, Innovation and Skills claiming the existing two-tier system allows for independent reviews of investigations. by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBrake For ItThe Most Worthless Cars Ever MadeBrake For ItBetterBe20 Stunning Female AthletesBetterBemoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comAlphaCute30 Rules That All “Hells Angels” Have To FollowAlphaCuteDefinitionDesi Arnaz Kept This Hidden Throughout The Filming of ‘I Love Lucy’Definitionthedelite.comNetflix Cancellations And Renewals: The Full List For 2021thedelite.comcenter_img whatsapp Sunday 19 December 2010 10:04 pm Tags: NULL whatsapp Show Comments ▼last_img read more