Morning papers: We’re still watching Barclays, says FSA
This morning’s headlines brought to you by Investment Adviser: Friday September 7 2012.
The banking industry has come under fresh scrutiny after the FSA ordered Barclays to overhaul its culture and its boardroom following the appointment of its new chief executive, Antony Jenkins, reports the Guardian.
The chairman of the FSA, Lord Turner, wrote to Barclays’ chairman-designate, Sir David Walker, saying that in spite of boardroom changes in the wake of the Libor scandal the culture of the bank still needed to improve.
Rajoy stance sets stage for EU stand-off
Spain will not be forced into requesting a rescue until the attached conditions become crystal clear, senior officials in Madrid insisted on Thursday, setting the stage for a prolonged stand off between the government of Mariano Rajoy and European authorities, reports the Financial Times.
After the ECB made clear that any assistance from the central bank to reduce Spanish borrowing costs would come with “strict and effective” conditionality, the Rajoy government remained steadfast in its view that a request would only be made if, and when, it is ready.
Banks need to be boring, says Lloyds chief
The sales culture that has riddled the banking industry with scandal must end and lenders must “recast” themselves as boring and trustworthy with a focus on customers, according to Lloyds Banking Group’s chief executive Antonio Horta-Osorio, reports the Daily Telegraph.
Investment banks eye Europe job cuts
Big investment banks in Europe, including Nomura, Credit Suisse and UBS, are stepping up plans to cut jobs as they seek to adapt to a drastic slowdown in revenues and tighter regulation, reports the Financial Times.
JPMorgan faces fresh probe
JPMorgan Chase is facing a new probe from the US Senate into the trading losses at its chief investment office, which have cost the bank $5.8bn (£3.6bn) and shaken its reputation for risk management, reports the Financial Times.
People familiar with the work by the powerful Senate permanent subcommittee on investigations said subpoenas for documents and requests for interviews had been sent to regulators, as investigators query whether officials at the Office of the Comptroller of the Currency, the Federal Reserve, the Federal Reserve Bank of New York and the Federal Deposit Insurance Corp provided proper oversight of the bank’s activities.
Housing prices drop again in ‘stagnant’ market
The moribund housing market is failing to make any headway in 2012 after another drop in prices during August, Halifax said yesterday, reports the Independent.
The lender’s latest index showed average prices dropping 0.4 per cent over the month to £160,256.
Amazon plans to create 2,000 British jobs after new Kindle launch
Amazon plans to create at least 2,000 jobs in Britain as the online retailer introduced an improved set of tablet devices to take on Apple’s iPad, reports the Daily Telegraph.