Investments  

Morning papers: Barclays boss faces pressure on bonuses

Barclays banking group faces mounting pressure from shareholders over falling profits and rising costs in its investment banking arm, the Financial Times reports.

The paper says Antony Jenkins, Barclays chief executive, is facing calls to explain his strategy as he and new finance director Tushar Morzaria prepare to launch an investor roadshow to discuss the full-year results.

Shares in Barclays ended the week 8 per cent down after it was revealed that the investment bank paid more in bonuses than the previous year despite lower annual profits and a slip into the red in the fourth quarter.

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The Financial Times also reports that Lloyds Banking Group is trying to negotiate for softer treatment from the Prudential Regulation Authority on new ‘ringfencing’ rules, fearing it might otherwise have to shut its investment banking arm.

House prices out of BoE control

Bank of England governor Mark Carney has said that wealthy foreign buyers have driven London house prices beyond the BoE’s control, the Independent has reported.

According to the paper, Mr Carney “played down” fears of a nationwide housing bubble but said the bank was prepared to use mortgage rates and lending rules to keep prices in check if the situation does emerge.

But he added that such measures are ineffective in London because foreign buyers do not rely on loans.

Clegg hints at Coalition power sharing

Deputy prime minister Nick Clegg has hinted at the possibility of a deal with Labour after the next election, The Guardian reports.

The paper says this could be an attempt to improve the Lib Dems’ relationship with Labour party leader Ed Miliband.

According to the paper, Mr Clegg told BBC Radio 4 David Cameron is being driven to the right by backbenchers, while Labour has changed for the better since last election.

Parents pay for school fees with homes

Parents are resorting to giving private schools a charge on their home in return for deferred fee payment in order to continue sending their children to their chosen schools, the Telegraph reports.

The paper says schools are effectively securing a loan against parents’ properties, meaning that in extreme circumstances schools could force parents to sell their home in order to recover the debt.