Morning papers: Eurozone agrees second Greek bail-out

Eurozone finance ministers reached a long-delayed €130bn (£108.5bn) second bail-out for Greece early this morning after strong-arming private holders of Greek bonds to take even deeper losses than they had accepted last month, reports the Financial Times.

Although Greek bondholders agreed in October to accept a 50 per cent cut in the face value of their bonds in face-to-face negotiations with Nicolas Sarkozy, France’s president, and German chancellor Angela Merkel, they will now be offered a “voluntary” deal with a haircut of 53.5 per cent, eurozone officials announced.

Lloyds chief Antonio Horta-Osorio under pressure to hand back bonus over PPI scandal

Antonio Horta-Osorio, Lloyds Banking Group’s new chief executive, has come under pressure to hand back part of his signing-on award to reflect the state-backed lender’s decision to strip 13 directors of about £2m in bonuses as a penalty for the payment protection insurance (PPI) mis-selling scandal, reports The Daily Telegraph.

It is believed that other banks, including RBS and Barclays, do not intend to clawback bonuses in the way Lloyds has announced. Instead, they insist that the cost of PPI misselling will be reflected in the 2011 bonus round, which has yet to be announced.

Japan recorded its largest-ever trade deficit last month

Japan, the country that for decades was seen as the most powerful exporter on the planet, recorded its largest-ever trade deficit last month, reports the Daily Mail.

The nation saw exports slump while imports surged in January, leaving the world’s third-largest economy with a deficit equivalent to almost £12bn.

Oil price hits eight-month high

Brent crude hit its highest point in eight months on Monday as Iran halted exports to British and French companies ahead of a European Union embargo, reports The Guardian.

Oil prices edged above $121 a barrel. Traders also said that policy developments in China and hopes that Greece’s second financial package will be agreed on Monday were helping to push up prices.

Fed writes sweeping rules from behind closed doors

The Federal Reserve has operated almost entirely behind closed doors as it rewrites the rule book governing the US financial system, a stark contrast with its push for transparency in its interest-rate policies and emergency-lending programs, reports The Wall Street Journal.

While many Americans may not realise it, the Fed has taken on a much larger regulatory role than at any time in history. Since the Dodd-Frank financial overhaul became law in July 2010, the Fed has held 47 separate votes on financial regulations, and scores more are coming.

Lib Dems push for Budget cut to pension tax relief for anyone on £60,000

Taxpayers earning £60,000 would be stripped of higher rate pensions tax relief under radical plans that the Liberal Democrats want included in the Budget, reports the Daily Mail.