Half of finance directors have no succession plan at their firm

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Half of finance directors have no succession plan at their firm

Half of finance directors have no succession plan at their firm
Over half of UK finance directors have no succession plan in place according to research released today.
City AM London, p. 8

Washington to charge S&P over debt crisis

The credit ratings agencies have largely escaped sanction so far for their role as “key enablers” of the financial crisis, but that is expected to change this week when the US Department of Justice files charges against Standard & Poor’s.
The Times, p. 35

Lloyds bonuses may face new bailout target
Lloyds’ chief executive may not receive this year’s bonus until the government’s stake in the bank is above the level it put into the institution, it emerged yesterday. The bank’s remuneration committee is thought to be considering holding back the payment of Antonio Horta-Osorio’s bonus until the share price recovers beyond its bailout level. They have not yet decided the level of that bonus.
City AM London, p. 7

Banks cast off Eurozone insurance
The longer term refinancing operation (LTRO) – the European Central Bank’s (ECB) original miracle drug for the liquidity constraints dogging the Eurozone – has reached a crossroads.
City AM London, p. 23

Italy probe on Euribor claims
Prosecutors in the Italian town of Trani are investigating five foreign banks for possible manipulation of Euribor, the europriced counterpart of scandal-hit Libor bank-to-bank lending rates, court sources said yesterday.
City AM London, p. 4

Osborne’s bank plan set to hurt City and economy
Threatening to split up all banks if the ringfence does not work will hurt the economy and hit the value of the bailed-out banks, analysts and lawyers claimed yesterday, attacking George Osborne’s plan for the sector.
City AM London, p. 2

Commerzbank charges lead to surprise loss
Commerzbank, Germany’s second largest bank, yesterday posted a surprise net loss of €720m (£617m) for the fourth quarter.
City AM London, p. 2

Bank reform triggers new lending fears
Yesterday plan to break up banks that fail to abide by rules to insulate retail banking from riskier activities were broadly welcomed by business leaders but drew a warning they could cast a cloud of uncertainty over the sector. Setting out the Banking Reform Bill, Chancellor George Osborne supported proposals made by the Parliamentary Commission on Banking Standards that any ring-fence should be “electrified” so banks that failed to comply were forced to do the splits. The British Bankers Association called the measures “regrettable” and said it would make it more difficult for banks to raise capital.
Daily Express, p. 66

These changes can’t come soon enough
Sam Dunn writes that radical reform of the way customers can switch bank accounts is long overdue. An Office of Fair Trading (OFT) report recently found barely 3 per cent of bank customers switched account in 2012.
Daily Mail, p. 12

LLOYDS BOSS IN LINE FOR £1.5BN BONUS
Lloyds is lining up chief executive Antonio Horta-Osorio for a £1.5million bonus. MPs and campaigners last night ratcheted up the pressure on Mr Horta-Osorio to give up his award, citing Lloyds’ £5.3billion compensation bill for mis-selling payment protection insurance.
Daily Mail, p. 12

Break-up threats hit banks’ shares
Last night shares in Britain’s leading banks fell after Chancellor George Osborne threatened to break up any that fail to reform, amid fresh scandals and rows over bonuses. Bank shares had a strong run in 2012, largely thanks to the initiatives taken by Mario Draghi, the European Central Bank supremo, to shore up the single currency. But Osborne’s pledge to ‘electrify’ the ring-fence separating banks’ casino activities from their high street savings and loans operations could have serious consequences – particularly for RBS and Barclays.
Daily Mail, p. 62

Osborne orders banks to allow new ‘upstarts’
In a keynote announcement, Chancellor George Osborne has ordered the big four banks to open up the high street to “upstart challengers” offering newer, faster services to consumers. In a speech to launch the Banking Reform Bill, Mr Osborne said the current system “isn’t working for customers, so we will change it”.
Evening Standard London, p. 2

Spanish sale
Sareb, the Spanish bad bank, yesterday said it was selling 13,000 properties, once owned by rescued lender Bankia.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 6

Bank reform to double ECB staff
The European Central Bank will need to hire about 2,000 bank supervision staff to put the eurozone’s banking union into practice, a consultancy report, commissioned by Mario Draghi, ECB president claims.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 6

Scandal close to home lays bare difficulties of Draghi mission
Focus on how the banking scandal at Monte dei Paschi di Siena has led to difficulties for Italian Presidential candidate Mario Draghi.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 6

UBS blazes trail with bond bonuses
UBS has become the first big bank to give thousands of senior bankers bonuses in the form of bonds that can be wiped out if the lender fails to meet capital requirements.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 1

Merrill units lift Julius Baer assets under management
James Shotter looks at Swiss private bank Julius Baer, whose assets under management have reached SFr200bn ($220bn) for the first time.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 20

Downside Commerzbank posts quarterly loss
Commerzbank has followed Deutsche Bank in reporting a quarterly loss after one-off charges and is to take a €500m hit from the cost of job cuts.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 20

S&P faces civil suit over ratings
It has emerged that the US Justice Department is expected to file a civil lawsuit alleging that Standard & Poor’s defrauded banks and national credit unions in the lead-up to the financial crisis by issuing overly rosy credit ratings for mortgage-related securities to win business.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 20

UBS to pay bonuses in bonds
UBS has become the first bank to give senior bankers bonuses as bonds that can be wiped out if the lender fails to meet capital requirements.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 17

More exits as Barclays tries to get past scandals
Barclays has said that its chief financial officer and its general counsel will resign, the latest departures after the British bank’s involvement in a series of scandals, including an investigation into the manipulation of global interest rates.
International Herald Tribune, p. 17

Banking rescue on track
The rescue program for the Spanish banking sector is on track, according to a review released Monday by the European authorities, The Associated Press reported from Brussels.
International Herald Tribune, p. 17

New questions on Bank of America deal
NEW YORK Bank of America has long rued its decision in 2008 to acquire Countrywide Financial, the subprime mortgage giant.
International Herald Tribune, p. 17

Osborne’s ring-fencing rule ‘will hinder banks’
In a speech in Bournemouth, George Osborne unveiled additions to the Banking Reform Bill that will give power to regulators to break up banks that breach the ring-fence between their retail and investment banking divisions. However, analysts at Credit Suisse said the rule “could continue to create an uncertainty for universal banking models”, in particular Barclays and Royal Bank of Scotland. They said it will “clearly limit the flexibility for banks when setting up their ring-fence plans and limit options to transfer capital and funding – this could increase the overall costs of the reform for the industry”.
The Daily Telegraph Business, p. 4

Barclays boss tied to bank
Barclays finance director Chris Lucas has been told he can’t sail off into the recruitment sunset for a “considerable time”, while the bank finds someone to fill his senior shoes.
The Daily Telegraph Business, p. 4

Lloyds pledges bonuses will be the lowest of any bank’
Lloyds Banking Group is planning an overhaul of the chief executive’s bonus scheme that will only see him receive an award once the taxpayer’s investment in the bank returns to the black. The new pay deal would mean Antonio Horta-Osorio could not draw his 2012 bonus until Lloyds’ shares hit a level where the state was back in profit on its bail-out investment. The Government paid £20bn for a 41pc stake in the bank in 2008.
The Daily Telegraph Business, p. 1

Lloyds bosses reject commission criticisms over mis-selling
Sir Win Bischoff, the chairman of Lloyds Banking Group, yesterday appeared before the banking standards commission, where he faced criticism for the way the bank handled mis-sold payment protection insurance and attempted to avoid liability for claims that have already topped £5bn.
The Guardian, p. 21

Osborne wants bankers to pay fines for rigging Libor
George Osborne, the Chancellor of the Exchequer, is forcing Royal Bank of Scotland to cut its staff’s pay to ensure that taxpayers do not pay the cost of the upcoming multimillion-pound fine for Libor rigging. During a speech in Bournemouth, he also claimed that it It was “well known” that RBS was considering management changes, although he gave veiled support for the chief executive, Stephen Hester, according to the report in The Guardian.
The Guardian, p. 21

Hedging his bets
The Guardian’s leader writer analyses the government’s proposed reforms of the banking system, claiming that they fall short of what is needed to ensure that the UK is protected from the results of “a second financial explosion”.
The Guardian, p. 28

No more gentleman’s agreements
Columnist Katherine Butler claims that the law that relates to the banking system requires “more bite”.
The Independent, p. 14

Libor woes for banks could end up as a car crash
It’s likely that Royal Bank of Scotland will this week become the third bank to pay a substantial fine to settle charges that its traders tried to manipulate Libor interest rates.
The Independent, p. 49

RBS fine to come from ‘bonus pot’
RBS must pay any Libor fine from its huge bonus pot, the Chancellor said yesterday. George Osborne said there would be “enormous public anger” if fines levied by US and UK regulators were not paid out of the bonus pool.
The Sun, p. 38

Lloyds boss defies MPs’ anger by accepting bonus of up to £1.5m

António Horta-Osório, chief executive of Lloyds Banking Group, is being lined up for a bonus of up to £1.5 million for last year, refusing to follow the example set by his counterparts at RBS and Barclays, who have both waived their rights to a payout.
The Times, p. 18

Barclays told to explain how it misled court over evidence
A judge has demanded that Barclays explain how it misled a court about disclosing crucial evidence in a £140 million corporate secrecy case.
The Times, p. 41

Risk on as bond returns slump at start of year
The return on government bonds has seen a significant slump since the turn of the year, with data revealing that investors in UK gilts took the strongest hit last month.
City AM London, p. 3

Currency wars: the winners and losers beyondbrics, the FT’s emerging markets hub
Foreign currency investors say the grip of so-called risk on/risk off trading has faded this year and fundamental reasons for buying or selling a currency are dominating investment choice.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 33

Euro retreats from highs
The euro fell from recent highs after a eurozone official said the currency might be too strong, sparking concerns it could hamper the region’s recovAery.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 34

Right time to start the winding up of QE
A comment on the need to end the practice of Quantitative Easing.
The Daily Telegraph Business, p. 2

Fresh fears for eurozone halt new year market rally
The FTSE 100, which last week closed at a four-and-a-half-year high, suffered its biggest fall for three months, ending the day 1.6pc down and wiping £25bn off the value of Britain’s biggest companies.
The Daily Telegraph Business, p. 1

AThe above articles appeared on 05/02/13 reproduced with the kind permission of Kantar Media UK. All rights reserved.

Charterbridge Private Financial Planning, Independent Financial Advice, Thornbury, Bristol.