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New mortgage for young… if backed by parents’ cash

New mortgage for young… if backed by parents’ cash
A report on the new Family Springboard mortgage, which is being launched by Barclays next week. The mortgage, requires parents or other family members to tie down 10 per cent of the purchase price in a connected savings account until the fixed-rate period ends.
Daily Express, p. 19

Pensioners should welcome this brave decision

It is a long time since a decision against change had such a big impact on all our lives, writes Alex Brummer. A brave ruling by the National Statistician Jil Matheson to leave the formula for the calculation of the retail prices index (RPI) unchanged has been given an enthusiastic welcome by financial markets and pensioner groups. If the Office for National Statistics had chosen to replace RPI with something based on a more modern statistical formula then the annual increase in these pensions could have been cut by as much as 0.9pc a year.
Daily Mail, p. 6

Mortgage-backed securities – come in from the cold

An examination of the impact of the Basel rule change on the US mortgage market.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 31

A new target for housing bubble blame
NEW YORK No matter how many times people debunk the notion that government policy created the U.
International Herald Tribune, p. 16

Hector Sants warns rate-fixing scandal might happen again
The Libor crisis could easily happen again, according to former Financial Services Authority chief Hector Sants.
City AM London, p. 3

Ex-UBS leader blames rapid expansion for Libor-rigging
UBS’s Libor-rigging culture grew in part because the Swiss bank became too big and complex for managers to keep track of behaviour properly, former bosses told MPs and peers yesterday.
City AM London, p. 3

Juncker backs French woman for regulator
Outgoing Eurozone head Jean Claude Juncker said yesterday that a French woman would head the board of the European Central Bank’s new banking supervision authority that was agreed last year and which is due to be in place in early 2014. The secretary general of France’s ACP financial sector regulator, Daniele Nouy, has been regularly cited as well placed to chair the board.
City AM London, p. 3

RBS reshuffle looms ahead of Libor fines
Senior RBS bankers are likely to lose their jobs over the Libor-fixing scandal as the state-backed institution looks to satisfy investors, politicians and the public that individuals have been punished, it has emerged. Investment bank boss John Hourican and markets head Peter Nielsen are believed to be potential casualties.
City AM London, p. 3

RBS rate-rigging storm is heading for Hourican
Royal Bank of Scotland is bracing itself for a huge fine as early as this month for rigging crucial interest rates. The state backed lender is also thought to be preparing to sack senior bosses to appease the City Watchdog. Those in the firing line are thought to include investment banking chief John Hourican and head of markets Peter Nielsen. It is understood the Financial Services Authority also wants senior bosses to take personal responsibility.
Daily Mail, p. 66

Recovery in eurozone to be ‘gradual’
The European Central Bank yesterday said there will only be a ‘gradual’ recovery in the eurozone economy towards the end of the year. ECB President Mario Draghi said the outlook in the region was improving but added it was ‘too early to claim success’.
Daily Mail, p. 66

PPI flood will create 1,000 new jobs
An extra 1,000 staff will be taken on by the financial referee to cope with a record number of PPI cases.
Daily Mirror, p. 66

LOAN GOAL FOR BANKS
The personal loan battle is heating up after Clydesdale and Yorkshire Bank chopped their rates to 5.1%.
Daily Mirror, p. 66

Fear of 3rd dip
Fears of a triple dip recession were exacerbated after interest rates were held at a record low.
Daily Star, p. 2

Spain’s central bank suffers setback

Officials at the Bank of Spain have been hit by allegations that the central bank ignored warnings from its inspectors about wrongdoing in the lenders they supervised.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 6

ECB points to ‘normalisation’ and keeps rates on hold No sign of ‘exuberance’
The European Central Bank has hailed a “normalisation” in financial market conditions as its governing council voted unanimously to keep rates on hold.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 6

Republicans join liberals to control rise of the ‘megabank’
Focus on how Republicans in the US have joined liberals to control rise of the ‘megabank’.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 7

The era of independent central banks is coming to an end
Comment from the HSBC Group chief economist and global head of economics and asset allocation research, on how central bankers are being dragged into the political fray.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 11

Banking union should ease Europe’s Target worries
Christian Thimann, the adviser to the president of the European Central Bank, comments on how a eurozone banking union should ease Europe’s ‘Target balance’ worries.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 11

RBS eyes investment bankers’ bonus pot to recoup Libor losses
It is reported that Royal Bank of Scotland is considering recouping half of its imminent regulatory penalty for Libor abuses from the 2012 bonus pool of its investment bankers, as pressure mounts on the top two executives in the division to quit.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 1

It’s time to embrace a new mental map of central banks
Columnist Gillian Tett discusses the role of shadow banking in the work of central banks and the need for “a new mental map of central banks.”
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 30

Sants warns on foreign branches in UK
Former FSA head Sir Hector Sants has claimed that scandals at UBS highlight the dangers of allowing big foreign banks to operate in Britain via branches that fall outside UK control.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 20

Wegelin aftershock rattles Swiss bankers
News analysis looks at how since US prosecutors brought criminal charges against Wegelin in early 2012, the demise of Switzerland’s oldest bank has been little more than a matter of time.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 20

Suit against Dubai Group dropped subject to wider debt deal
Four lenders including the Royal Bank of Scotland have reportedly dropped a lawsuit against Dubai Group after agreeing to restructure debts owed by the Dubai ruler’s troubled investment firm.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 20

UBS chief seeks a new moral path
News analysis looks at how the new head of investment banking at Switzerland’s UBS eyes ‘integrity over profit.’
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 20

Financials gain as investors are braced for bank results
US market reports, including Wells Fargo and JPMorgan Chase.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 32

E¬UBS bosses in dark on Libor
Former executives at UBS yesterday denied all knowledge of Libor manipulation during their tenures, insisting they had not realised their bank’s rate-setting mechanism was under scrutiny.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 15

Credit Suisse to sell ETF business to BlackRock
Credit Suisse is to sell its underperforming exchange traded funds business to BlackRock, the world’s largest fund manager by assets under management, as the Swiss bank presses ahead with plans to bolster its capital position.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 16

German giant implicated in scandal
Deutsche Bank made huge profits from betting on Libor interest rates, it was reported yesterday, amid fresh rumours that Royal Bank of Scotland is poised to settle with regulators and pay more than £300m over the Libor-fixing affair.
Independent i, p. 42

Traders might have rigged Libor for even longer
“Mercenary” traders at UBS could have been manipulating Libor interest rates for years before the period it paid a record $1.
Independent i, p. 42

DILUTING BANK RULES
A committee of central bankers and regulators from more than two dozen countries, including the United States, has disappointingly given in to lobbying by big banks and watered down important rules meant to strengthen the global financial system.
International Herald Tribune, p. 8

What matters to big banks
Regarding ”Regulators ease up on new rules for global banks” (Jan. 7): Large banks are second to none among institutions in arguing against regulations, no matter how reasonable and valuable in protecting both the public and the banks themselves against unwise behavior.
International Herald Tribune, p. 9

Fears growing over future of Morgan Stanley
When Morgan Stanley’s top executives gathered in mid-September at a hotel in New York to discuss strategy, some participants complained that the room was too small.
International Herald Tribune, p. 14

Chinese banks cut back, but lending rises
For Chinese borrowers, bank loans are becoming passé. Regular lending accounted for just 52 percent of the total funding that went into the economy in 2012, compared with 58 percent in 2011.
International Herald Tribune, p. 18

Improving the ability to foretell crisis
Five years ago, the financial regulators of the United States ? and, more broadly, the world ?
International Herald Tribune, p. 18

MPC keeps rates on hold
The Bank of England kept interest rates at 0. 5pc and held its quantitative easing programme at £375bn this month, as had been widely expected.
The Daily Telegraph Business, p. 5

Record PPI compensation payouts expected
The Financial Ombudsman Service yesterday predicted that it would almost three times as many cases in 2013 as it has done during the current financial year.
The Guardian, p. 31

Top RBS bankers may pay the price for Libor scandal
John Hourican, head of the RBS investment bank, and Peter Nielsen, head of markets, may end up leaving the firm as a result of its settlement with regulators in relation to the Libor case.
The Guardian, p. 31

Workload licks bank watchdog

Finance watchdogs want to recruit another thousand staff to deal with “unprecedented” complaints about banks from customers, it has emerged. The financial Ombudsman Service said it needed to repeat last year’s huge recruitment drive. Deputy chief ombudsman Tony Boorman said: “Many continue to frustrate customers with delays and inconvenience. This has a marked impact on our workload.”
The Sun, p. 44

Defrauded expats in French bank victory
A group of mostly elderly British expatriates has won a landmark victory against two powerful French banks over a scam that deprived them of their life savings. Crédit Agricole was ordered to reimburse four of the victims a total of more than €120,000 (£99,000) after a court found that it had committed a “serious fault” in the case. Société Générale is understood to have agreed to pay ten or so other Britons an out-of-court settlement believed to exceed €1 million.
The Times, p. 45

Bank of England holds rates as inflation expected to rise again
The Bank of England decided to keep interest rates steady yesterday, and economists predict rising inflation will stop the Monetary Policy Committee (MPC) from printing more money any time soon.
City AM London, p. 6

Draghi goes on attack against austerity critics
Focus on how balancing governments’ books and reforming the Eurozone’s weakest economies are more vital than ever, according to European Central Bank boss Mario Draghi.
City AM London, p. 6

Spain and Italy see borrowing costs collapse
Investors showed increasing trust in the Spanish and Italian governments yesterday, allowing the countries’ borrowing costs to fall to unexpectedly low levels.
City AM London, p. 15

Boost to utilities and bonds as RPI flaws go untouched
The Office for National Statistics shied away today from changing the way it calculates one of the indexes it uses to measure the cost of living.
Evening Standard London, p. 45

Chinese growth hopes boost global stocks
A global stock overview notes how the euro benefited from yesterday’s comments by MArio Draghi.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 32

Euro rises on Draghi forecast
Currency reports, the euro rose above $1.32 against the dollar after the European Central Bank kept interest rates on hold and signalled a more positive outlook for the eurozone.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 32

Interest rates held steady in Europe and U.K.
The euro zone economy shows signs of stabilizing and may even be in a period of ”positive contagion,” Mario Draghi, the president of the European Central Bank, said Thursday as the bank left its main interest rate at a record low.
International Herald Tribune, p. 14

Draghi hails transformed landscape for the eurozone
The president of the European Central Bank, Mario Draghi, comments on the ‘transformation of the financial landscape’, citing a sharp drop in bond yields, a stock market rally, and recovery of bank deposits in Greece and Spain.
The Daily Telegraph Business, p. 4

Upbeat Draghi predicts euro recovery at last
The ECB governor, Mario Draghi, has claimed that a “positive contagion” is assisting in the recovery of the eurozone, where “volatility is at a historical minimum” as a result of “strong capital inflows”. Following his remarks, the euro jumped almost two cents against the dollar to $1.326.
The Guardian, p. 34

Interest rates held
The Bank of England kept interest rates at the record low of 0.5 per cent yesterday and also maintained its quantitative easing at £375 billion. The European Central Bank kept interest rates at 0.75 per cent.
The Times, p. 35

The above articles appeared on 11/01/13 reproduced with the kind permission of Kantar Media UK. All rights reserved.

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