Monthly Archives: February 2013

Banks fear damage from EU bonus cap

Leading bankers and investors have warned that an EU bonus cap for banks poses a competitive threat to Europe’s finance industry. Executives at large European banks said they were at risk of losing key traders and managers to US and other international rivals after the EU provisionally agreed on a 1:1 bonus-to-salary ratio. With shareholder approval, the ratio can rise…

Cleartrade plans to sell majority stake

Cleartrade Exchange, the start-up Singapore-based commodities bourse, is looking to sell a majority stake in itself to users and large futures exchanges to fund the next stage of its growth. Investors, traders and market participants have been sent an information memorandum about the three-year-old group, which has been trading since March 2011, after it received regulatory approval from the Singapore…

CBOE doubles SEC probe costs

CBOE Holdings, operator of the world’s largest options exchange, has estimated that the costs of resolving an investigation by US regulators into the company’s regulatory functions could double to $10m. The company, which runs the Chicago Board Options Exchange, reported the updated figure in a regulatory filing on Thursday. The Securities and Exchange Commission probe, about which CBOE has not…

US money market funds warm to eurozone

The amount of money being allocated by US money markets funds to eurozone banks hit the highest level for more than a year, in a sign of how much investor sentiment towards Europe has thawed in the wake of central bank action. New figures from Fitch Ratings show that as of the end of January, the exposure to eurozone banks…

Wall Street gives up modest gains

Retailers were in focus as a batch of disappointing earnings from companies such as JC Penney and Sears capped gains in the sector’s stocks. JC Penney dropped 17 per cent to $17.57 after the retailer’s quarterly results, released after the market closed on Wednesday, were far worse than expected. Net losses widened to $552m, or 24 cents per share, as…

US watchdog set to weaken derivatives rules

A leading US regulator is poised to water down rules for derivatives trading that critics argue will allow global banks to preserve their dominance of the market. Mark Wetjen, seen as the swing vote on the five-person Commodity Futures Trading Commission, recommended this week in a confidential agency memorandum that the CFTC alter its proposed rule regarding derivatives marketplaces, or…

RBS moves closer to privatisation

©Getty Stephen Hester has sent the strongest signal yet that Royal Bank of Scotland could be ready for reprivatisation next year as the state-owned bank announced that a series of scandals had helped push it into losses of more than £5bn for 2012. “The time when it can be privatised … is coming much closer,” the RBS chief executive said…

IAG rises following profit projection

British Airways owner International Airlines Group posted a €997m loss for last year after taking a €343m impairment charge for its beleaguered Spanish subsidiary Iberia. The group, which was formed through a merger between Iberia and British Airways, said it expected to see stronger operating profits next year than in 2011 when it reported a €485m profit. Investors sent its…

Bankers look for ways round bonus caps

Bankers and pay experts were quick to react angrily to the EU’s plan to single out banks for bonus caps. But they did not let their anger distract them from immediately looking for ways to get around the rules. Top bankers said their human resources departments and lawyers had straightaway started to comb the – so far scant – details…

Euro nears $1.30 against the dollar

The euro fell close to $1.30 against the dollar as falling inflation in the single currency bloc weighed on growth concerns. The single currency lost 0.4 per cent to $1.3058 after the European Commission said that inflation in January fell on an annual basis to 2 per cent, down from 2.2 per cent in December, increasing bets that the European…