We are failing staff on pensions, admit world's biggest companies

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We are failing staff on pensions, admit world’s biggest companies

Pensions & Life Assurance

We are failing staff on pensions, admit world’s biggest companies
A study by PwC has found that the world’s 114 biggest companies know they fail their staff when it comes to pensions. The research showed that only 6 per cent are willing to continue with so-called defined benefit pensions, which guarantee a set income on retirement. But they recognised that the typical alternative of defined contribution schemes, where retirement income is dependent on investment returns, is failing.
The Independent, p. 54

Japan fund rejects rebalancing plan
The head of Japan’s Government Pension Investment Fund, Takatoshi Ito, has hit out at pressure to rebalance its bond-heavy portfolio.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 6

Mortgages & Residential Property

£8.4m compensation for 34,000 mortgage clients
Around 34,000 mortgage borrowers are to share £8.4m in compensation after Yorkshire Building Society wrongly charged customers who fell behind with repayments.
The Daily Telegraph Business, p. 4

Retail Banking

Angry shareholders want answers over Barclays’ pay
A new furore is growing around Barclays and its pay and bonus policy after it emerged that several of the bank’s leading institutional investors plan to approach its chairman, Sir David Walker, directly to voice their concern.
The Times, p. 39

Tesco and Virgin do battle with bank cards
Tesco Bank and Virgin Money are set to go head-to-head by launching current accounts within the next few months and ultimately intend to offer a two-headed challenge to the big retail banks.
The Times, p. 37
Also appeared in : The Times, p.38

Appointments

Barclays hunts for new chairman as cuts loom
Barclays is hunting for a new chairman just 18 months after the appointment of Sir David Walker to the bank’s board. Sir David, a former chairman of Morgan Stanley and author of the Walker review of banking, is expected to step down as Barclays chairman in the summer next year, when he will have served for three years. At that point, he will be 75.
The Daily Telegraph Business, p. 5

Round Up

Hold back bonuses for a long time, Carney tells bankers
Mark Carney has intervened in the row about bankers’ bonuses with a demand that a large chunk of the pay packages for senior staff should be deferred “for a very long time”. Interviewed on the BBC’s Andrew Marr Show, the governor of the Bank of England said a change in compensation structures was needed so that banks could see whether employees had taken undue risks or behaved badly.
The Guardian, p. 24

Carney defends change of tack on interest rate guidance
The Bank of England has defended its decision to abandon guidance linking interest rates to unemployment, but says interest rates might nonetheless need to remain low for some time.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 4
Also appeared in : The Daily Telegraph, p.1

Pressure is rising for Barclays
Barclays shareholders will this week press the bank’s under-fire chief executive Antony Jenkins and new finance director Tushar Morzaria to spell out strategy for turning round its investment bank.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 17

Citigroup rules out standalone India unit
Citigroup has become the first of the so-called “Big 3” foreign lenders to rule out establishing a separately capitalised subsidiary in India’s fast-growing banking sector.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 17

Lloyds in talks for ‘lower’ ringfence
Lloyds Banking Group is pushing for softer treatment from the Prudential Regulation Authority on new “ringfencing” rules as it fears it will otherwise have to shut down investment banking activities.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 18

Manufacturers’ client financing at post-­crisis high as banks cut back
The UK’s largest manufacturers are increasingly stepping in to fill the gap left by banks, with lending to customers rising to a post-credit crisis high of £16bn in 2013.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 17

EU referendum is bad for business, says Carney
Bank of England Governor Mark Carney has warned that David Cameron’s plans for a referendum on Britain’s membership of the European Union are bad for the economy and could hamper investment. He said that there was little that the Bank of England could do to ease the concerns of businesses about the referendum.
The Daily Telegraph, p. 4

credit-check giant bought for £480m
Callcredit has been sold to the US private-equity firm GTCR Golder Rauner in a £480m deal. The Yorkshire-based operation was carved out of Skipton Building Society, with Vitruvian picking up the business in 2009 for a reported £120m.
The Daily Telegraph Business, p. 3

Spain due to sell stake in bailed–out Bankia
Spain’s government will sell its stake Bankia, the bank bailed out by the EU in 2012, in stages over the next few years.
The Daily Telegraph Business, p. 4

The above articles appeared on 17.02.2014. Reproduced with the kind permission of Kantar Media UK. All rights reserved.

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