Mervyn King turns on the bankers
Mervyn King, the governor of the Bank of England, yesterday hit back at the UK banking profession and admitted that UK regulators missed an opportunity to clamp down on excessive bonuses and remuneration packages during the depths of recession. As we covered in one of our earlier articles, Mervyn King was most certainly in apologetic mood yesterday and appeared to be attempting to curry favor with the unions.
Despite the fact that a number of union representatives turned their backs on the Mervyn King and walked out of during his speech he was given a far better reception than many had expected. When the governor of the Bank of England turns on the UK banking community then we know that the sector is most certainly public enemy number one. Quite why Mervyn King has taken this particular stance at this particular moment in time is something which is slightly puzzling.
However, the bottom line seems to be that the UK banking arena has been cut adrift more than ever before and historic friends that have defended the sector now appear to be turning against it. Whether the introduction of Mervyn King to the mix will make the UK banking arena think again is something which many people will be considering.
BSkyB agrees to sell part of ITV stake
After a very expensive two-year legal battle BSkyB has finally agreed to sell around 10% of the company's near 18% stake in ITV. The situation can be traced back to the Competition Commission ruling back in 2008 which concluded that BSkyB could have undue influence over ITV it was able to maintain its 17.9% stake. The overall state stake is now running at a loss of £330 million and has been nothi...Read More
EU threatens legal action after American car industry bailout
In what could be the first serious test of Barack Obama's tenure as president of America it has been revealed that EU authorities are considering legal action against the American car industry bailout. The potential move comes with the revelation that American rescue packages include a clause which obliges those involved to "buy American steel and other American components" in a blatant disregard...Read More
Lord Mandelson disappointed with Kraft Foods meeting
Just hours after Kraft Foods officially took control of UK giant Cadbury Lord Mandelson was having a personal meeting with Kraft Foods chief executive Irene Rosenfeld. The meeting was purely and simply an opportunity for the UK government to glean commitment from the new US parent company regarding UK jobs and the future stability of the UK operations. However, it looks as though the meeting with...Read More
Gordon Brown steps forward for UK small businesses
Yet against Gordon Brown has been forced to remind the UK banking sector of its new obligations towards small businesses and finance. This comes in the wake of a report suggesting that the £700 billion rescue package has yet to have a material impact on the internal money markets which will lead the UK out of recession.
Tory leader David Cameron has today criticised Gordon Brown an...
Stocks slide as US bond yields rise
Shares across the world have taken a tumble after US government bond yields hit their highest level in five years yesterday, prompting fears of higher interest rates.
London's FTSE 100 index was down 30 points in early trading after New York's Dow Jones took a 130-point fall overnight.
In Japan the Nikkei fell 28 points, while Germany's Dax bourse opened with a 72-point drop.