Pensions time bomb blamed on distrust of providers

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Pensions time bomb blamed on distrust of providers

Pensions time bomb blamed on distrust of providers
Treasury aide David Mowat has warned that Britain is facing a pensions “time bomb” because many workers do not trust the pensions industry. Many private-sector workers are refusing to save into pension funds because of “massive distrust” in the pensions industry and charges that can eat up half of all investments, he added.
The Daily Telegraph, p. 14

Downgrade on doubts around Co-op’s rescue
The CO-OP Bank was hit by another downgrade from Moody’s yesterday, as the credit ratings agency warned the bail-in rescue deal faces risks.
City AM London, p. 4

Fallout from the Co-op bail-in is hitting the brand hard
Co-op Bank’s bail-in – announced on Monday after it struck a deal with regulators to plug its £1.5bn capital hole – comes at a tumultuous time for the bank, following its failed attempt to buy 632 Lloyds branches and its downgrade by ratings agency Moody’s.
City AM London, p. 4

Bankers ‘should face threat of jail’
Senior bankers should face jail and the loss of millions of pounds in bonuses if they are involved in a future banking collapse, the report by the Commission on Banking Standards recommended yesterday. The Government has been urged to introduce a new criminal offence for “senior persons” who run banks in a “reckless manner”, as well as much more stringent clawback rules that could see managers being stripped of several years’ worth of pay. Other recommendations of the report include a new regime for approving “senior persons”; up to 10-year deferrals of bonuses; a criminal offence for running a bank in a “reckless manner”; the cancellation of all bonuses for managers if a bank “requires direct taxpayer support”.
The Daily Telegraph Business, p. 1
Also appeared in : City AM London, p.1, International Herald Tribune, p.16, The Independent, p.1-7, The Times, p.38, Independent i, p.4

Scholarly review tells British banks they must do better
The Parliamentary Commission on Banking Standards report – called Changing Banking for Good – runs to more than 500 pages and is the culmination of a year’s work. It cost £850,000 to produce and took evidence from more than 250 witnesses. Its recommendations include: Royal Bank of Scotland The banking standards commission believes George Osborne’s plan for reprivatising RBS, “risks being insufficient”.
The Guardian, p. 24-25
Also appeared in : The Daily Telegraph Business, p.5, The Independent, p.50

Osborne set to change tack with bad bank split for RBS
A final report by the Parliamentary Commission on Banking Standards states that the Royal Bank of Scotland is not ready to return to the private sector. A Treasury-run assessment, which could be completed over the summer, will reopen questions over how to focus RBS on the UK economy and get rid of the retail and investment banking operations it still runs overseas.
The Times, p. 35

Crest looks to build on success – and avoid bubble
The Bank of England’s latest survey of systemic risks warned this week that one in four risk managers at UK financial institutions worried over a potential slump in house prices at some point in the next three years.
The Independent, p. 53

Female prudence back in vogue
The Parliamentary Commission on Banking Standards has called for a better gender balance at the heart of investment banks.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 3

Lloyds boss unable to answer MPs over Co-op warning letter
Sir Win Bischoff, the chairman of Lloyds Banking Group, came under pressure from MPs yesterday when he was unable to say whether he had seen a key letter that might have saved the bank from pursuing its disastrous attempted deal with the Co-operative Bank. NBNK, a purpose-built bidding vehicle chaired by Lord Levene of Portsoken, the City grandee, lost out to the Co-op 18 months ago in a two-way battle to be named preferred bidder for 632 Lloyds branches.
The Times, p. 39
Also appeared in : Financial Times Companies and Markets, p.20, The Times, p.35, The Daily Telegraph Business, p.5, Independent i, p.40, The Independent, p.51

Chief defends Lloyds over PPI but admits complaint failings
Lloyds Banking Group has done “absolutely the right thing” to ensure that its customers get compensation for mis-sold payment protection insurance, chief executive António Horta-Osório told MPs yesterday.
The Times, p. 22

HK watchdog probes HSBC on Hibor
HSBC is reportedly being probed by the Hong Kong Monetary Authority over whether it manipulated the rates at which banks lend to each other in the island’s financial markets.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 16

Danske Bank in row with regulator over capital levels
Danske Bank has become embroiled in a fierce dispute with the Danish Financial Supervisory Authority over the amount of capital it needs to hold in a clash that some analysts said raises questions about management credibility.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 16

Deloitte fined $10m and given one-year ban
The consulting and accounting giant Deloitte received a sharp slap on the wrists from officials in New York state yesterday, agreeing to pay a $10m fine and to a one-year ban from providing consulting work to financial institutions, overseen by state regulators afters its work for Standard Chartered on money laundering issues was found wanting.
Independent i, p. 40
Also appeared in : The Daily Telegraph Business, p.4

Commerzbank ‘wins backing’ to lay off 5,000 staff worldwide
Commerzbank has agreed in principle a deal to shed 5,000 staff worldwide, according to local media reports.
The Daily Telegraph Business, p. 5

Carney’s tenure may begin with a ‘Dear George’ letter
One of Mark Carney’s first jobs as Governor of the Bank of England is likely to be writing to the Chancellor to explain why inflation is more than one percentage point above its official target of 2 per cent. Consumer prices inflation rose to 2.7 per cent last month, from 2.4 per cent in April, and retail prices inflation increased to 3.1 per cent, from 2.9 per cent, according to the ONS.
The Times, p. 38
Also appeared in : The Times, p.38, The Independent, p.52

The above articles appeared on 19/06/13 reproduced with the kind permission of Kantar Media UK. All rights reserved.

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