New moves to give Fannie and Freddie private lives

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New moves to give Fannie and Freddie private lives

New moves to give Fannie and Freddie private lives
A group of US hedge funds and private equity investors are proposing to take the American government-backed mortgage groups Fannie Mae and Freddie Mac out of federal ownership.
The Times, p. 46

Union mulls strike over cap on Lloyds pension contributions
Lloyds Banking Group could have a strike on its hands as unions consult thousands of staff on a new cap to pension contributions.
City AM London, p. 4

Sants leaves Barclays after just 10 months
Former top regulator Sir Hector Sants yesterday resigned from Barclays, a month after going on sick leave.
City AM London, p. 3

Aberdeen said to rule out big change in bid
Aberdeen Asset Management has ruled out making a cash offer for Scottish Widows Investment Partnership (SWIP) even if that means losing out in a bid battle for the investment business currently owned by Lloyds Banking Group, sources close to the talks said last night.
City AM London, p. 3

$1.6 TRILLION
Five of rock-bottom interest rates and loose monetary policy have delivered an astonishing windfall to governments around the world, new research published today reveals.
City AM London, p. 1

Carney hails recovery as unemployment falls
The Bank of England has said that interest rates may rise as soon as early 2015 thanks to plunging unemployment and a strong start to the recovery. This is a year earlier than previously planned. Bank of England governor Mark Carney was upbeat on the data but said interest rates will not rise until the recovery is in full flow.
City AM London, p. 2

The short-term outlook for the British economy is very bullish
Allister Heath comments on the UK economy and its recovery. The Bank of England has raised its growth forecast for this year and next (to 1.6 per cent and 2.8 per cent) and conceded that unemployment is falling more quickly than it had been expecting. He says that the Bank should already have started to gently and gradually hike rates by now, rather than be planning to wait until it’s too late.
City AM London, p. 2

Attack the City
Joshi Herrmann looks at Waking Shark 2, a secretive exercise that took place yesterday to test how London would fare under a major cyber assault. The exercise was organised by the Bank of England, led by Credit Suisse and involved teams of bank staff, Treasury officials and national security agents. These participants grappled with the question: what if the entire wholesale banking system was struck by a cyberattack?
Evening Standard London, p. 30-31

Man ‘given sack after finding a manager’s nude photo on laptop’
An employment tribunal has heard how Claudio Pallone was sacked after finding a photo of a senior manager naked and in a sexually explicit pose on a work computer. The City bank worker claims he was dismissed as information security officer at Banco do Brasil after exposing a series of security breaches which left the firm at risk of money laundering and fraud. Mr Pallone is suing the South American banking giant. The bank denies the allegations.
Evening Standard London, p. 12

Recovery has taken hold, says Bank boss Carney
The Bank of England has predicted that Britain’s growth will reach 2. 8 per cent next year – the best since 2007. The Bank upgraded its estimate for GDP growth this year from 1.4 per cent to 1.6 per cent and for next year from 2.5 to 2.8 per cent. The pace of the recovery has made it far more likely that interest rates will go up, perhaps as early as next year. However, Governor Mark Carney said: “We’re providing the confidence to businesses and households that we will not even begin to think about moving interest rates until that threshold is achieved.”
Evening Standard London, p. 1-2

Confusion reigns over use of forward guidance
Chris Giles looks at how the Bank of England’s forward guidance strategy on interest rates is leading to confusion because of Britain’s quicker than expected economic recovery.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 2

Barclays’ ethical turnround hopes suffer blow as Sants stands down
Sir Hector Sants, Barclays’ high-profile regulatory affairs boss, has resigned, along with another senior banker dealing a blow to chief executive Antony Jenkins’ attempts to reinvent the scandal-plagued lender.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 1

Central banker seeks to quell rate anger
Jens Weidmann, the head of Germany’s central bank, has sought to calm domestic anger over the eurozone’s low interest rates, saying the country’s savers do not face any special discrimination.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 6

UniCredit German unit chips in €7bn
UniCredit expects Europe’s banking union, which is set to go ahead in 2014, to free up €7bn of capital for Italy’s largest bank from its German subsidiary as capital requirements are equalised across the eurozone.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 22

Natixis allots €1.5bn to asset management deals
France’s fourth largest bank, Natixis, intends to diversify aggressively into asset management and has set aside a budget of up to €1.5bn for acquisitions.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 18

Eurozone periphery’s banks tap appetite for yield
Peripheral eurozone banks have taken advantage of unusually generous market conditions and yield-starved investors to issue a glut of unsecured debt.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 34

S&P 500 hits record as focus remains on central bank policy
US and European equities put in mixed performances and government bond yields mostly declined as the focus in the markets remained firmly on the outlook for central bank policy around the world.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 33

Britain’s recovery ‘strongest in world’
Bank of England Governor Mark Carney said yesterday that Britain is enjoying “one of strongest recoveries in the advanced world”, and that the country’s nascent recovery has “finally taken hold”. He was speaking as the Bank raised its forecasts for economic growth and suggested that it could start raising interest rates more quickly than expected, perhaps even before the general election due in 2015. Official figures also showed that unemployment has declined again, falling to 7.6%, the lowest level since 2009.
The Daily Telegraph, p. 1

Blow for Barclays reform plans as Hector Sants quits
Sir Hector Sants has left Barclays in a blow to chief executive Antony Jenkins’ efforts to reform the bank.
The Daily Telegraph Business, p. 1

Bank making heavy weather of fiscal forecasts
The Guardian’s economic editor, Larry Elliott, claims that financial markets remain unconvinced by the Bank of England’s position on interest rates. He claims that the Bank is “underestimating the momentum in an economy that has been awash in cheap money for almost five years now” and that this could lead to pressure for interest rates to be raised much more quickly.
The Guardian, p. 30-31

Spain joins the price slide as eurozone wakes up to the threat of deflation
The Guardian has reported that Spain has followed Britain in experiencing a slowdown in inflation, leaving it “mired in deflation”. Despite this, Jens Weidmann, the president of the Bundesbank, told an audience of German co-operative banks yesterday that “the European Central Bank council does not expect a deflation scenario.” The denial itself is seen by the newspaper as “revealing” of concern.
The Guardian, p. 30-31

Head of Barclays clean-up move quits as he falls victim to stress
It has been revealed that just a month after taking sick leave as a result of stress and exhaustion, Sir Hector Sants, the man hired to lead a clean up at Barclays, has quit. Sir Hector, who had been chief executive of the Financial Services Authority throughout the financial crisis, took on the £3m role of head of compliance and government and regulatory regulations at Barclays in January. However, such an intense and high-profile job took a grave toll after the pressure of leading the FSA during the heat of the financial crisis.
The Independent, p. 59

More households are ready for a rate rise within a year
A new survey by financial data provider Markit has warned that almost half of households are preparing for an interest rate rise within a year as the economy recovers. Markit’s latest snapshot of interest rate expectations among 1500 households showed 47% think the Bank of England will raise interest rates within 12 months.
Evening Standard London, p. 41

Monetary shock from Japan eclipses Fed taper concerns
David Bowers analysis on the fall-out from Japan’s decision to double the size of its monetary base, plus boost holdings of government bonds and exchange traded funds.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 32
The above articles appeared on 14/11/13 reproduced with the kind permission of Kantar Media UK. All rights reserved.

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