The Financial Services Authority (FSA) has today announced plans for an overhaul of the relationship between journalists and the financial sector. Without naming names, the FSA has confirmed that some analyst close to corporate deals have been in contact with journalists just prior to the announcement of corporate transactions in the financial press. While not all of these conversations have involved the leaking of market sensitive information, with many checking to see exactly what journalists were aware of, the FSA believes that some sensitive information has been passed over.
A surprise increase in jobless figures in America saw the dollar come under pressure on the foreign exchanges today as did the euro on the back of disappointing economic data regarding the euro zone. There is also concern that the Irish government will come under further pressure in the short to medium term with regards to the overall cost of bailing out the Irish financial sector.
In a blatant attempt to curry favour with Royal Mail employees the UK government yesterday announced plans for a massive share sale which would see 10% of shares available put to one side for Royal Mail employees. It is believed that Royal Mail staff will be offered a discount on the issue price as well as the potential to have a very prominent say in the future direction of the company.
There is no doubt that Vince Cable has certainly put the UK banking arena back in the spotlight with a very emotional, controversial and in many cases truthful speech at the Liberal Democrat Party conference today. However, when you are business secretary for the coalition government should you really be using such emotive and demeaning words to describe the very people you're supposed to have a working relationship with?
Vince Cable has effectively today cut himself adrift from the coalition government with a controversial attack on the UK banking arena. He has described the "spivs and gamblers" operating in this sector claiming they are more dangerous than militant union leaders. While his comments were fully expected after leaks to the press yesterday it is his industrial language which will upset many in the UK financial sector.
Business Secretary Vince Cable is today expected to launch a scathing attack on the UK financial arena highlighting "murky practices" and self-interest in an attempt to appease Liberal Democrats concerns about the coalition government. Over the last few days it is become more apparent that Vince Cable and Nick Clegg are veering off-line with regards to the coalition government's official line on the city which could cause friction with David Cameron and his Conservative counterparts. So why are Vince Cable and Nick Clegg attacking the city?
Lord Turner, the chairman of the Financial Services Authority, believes now is the time to lay off the UK banking sector which has been demonised for many months now. Only yesterday we saw Nick Clegg and Vince Cable stepping up to the mark to suggest that the government will "do whatever is needed" to attack the greed of the UK financial sector. There is now a danger that the banking industry will be effectively separated from the rest of the UK business arena and held at arms length by the UK government.
The US authorities have today officially confirmed that the BP Gulf of Mexico oil leak is now over after 152 days. It is believed that around 5 million barrels of oil leaked into the Gulf of Mexico causing one of the largest natural disasters in recent times. The impact upon the BP share price has been as dramatic with the company suffering from a financial point of view as well as a reputation point of view.
Despite the fact that hundreds of corporate bankers in the UK had already begun to lick their lips at the prospect of a potential float of Santander's UK division, these hopes have been dashed with news that the division will not be sold before spring 2011 at the earliest. The company has today confirmed that an immediate flotation of the UK division, taking in Abbey, Alliance and Leicester and Bradford and Bingley, is unlikely in the short term.
Santander, the Spanish financial giant, is rumoured to be on the verge of selling off a 20% stake in its British operations which take in the likes of Abbey, Alliance and Leicester and Bradford and Bingley. The company has been very active in the acquisitions market over the last few years, not only in the UK but around the world, and many feel the company is looking to cash in some of its chips.
