What is shadow banking? New lending leaves banks in the shade October 30, 2014 Shadow banking grew by $5 trillion (£3.1 trillion) last year to total $75 trillion of assets worldwide, as the alternative finance sector took over from banks as the main source of lending growth. By contrast the banking sector’s assets stayed flat, as the industry continued to deal with a legacy of bad loans and [...]
Uber driver rape allegations: Can taxi app overcome its latest scandal in New Delhi? December 8, 2014 The controversial ridehire app faces public outcry after one of its drivers is accused of rape in New Delhi. Uber's success, its $40bn (£25.6bn) valuation and its rapid adoption as a verb is marred with questionable business practices and a rapid global expansion that has now brought into question whether Uber is “safest rides on [...]
The G20 must not let the post-crisis regulatory storm jeopardise global growth November 11, 2014 FOR ITS decisive and co-ordinated action to deal with the financial crisis, the G20 won a lot of credibility. But as it prepares for its latest summit in Brisbane this week, we now need this forum for governments and central banks from the 20 major economies to act decisively again, and adjust the direction of [...]
Gherkin bought by Safra Group: Meet the Brazilian-Lebanese billionaire behind the £700m deal November 10, 2014 The City's iconic Gherkin has been snapped up for more than £700m by the Safra Group, the investment giant controlled by Brazilian-Lebanese billionaire Joseph Safra. Safra, which last month won a $682m (£430m) takeover battle for banana group Chiquita, said yesterday it had agreed to buy the 590-foot tower at 30 St Mary’s [...]
The other FCA concern: Why its new rules for bankers would hurt the UK economy December 8, 2014 IT’LL be a busy week for the Financial Conduct Authority (FCA). Yesterday, the regulator announced a new strategic approach for the organisation, with key personnel changes and a “sharper focus” on the challenges ahead. A review by Clifford Chance partner Simon Davis into the FCA’s handling of an insurance probe earlier this year is also [...]
Nigel Farage’s confusion on sex education is just the latest in a series of Ukip policy flip-flops December 3, 2014 Ukip has once again had to clarify party policy after Nigel Farage appeared to disown the position held by his deputy Paul Nuttall that sex education should be scrapped for primary school children. Speaking in an ITV debate with young voters, the Ukip leader said: I have never advocated that policy … I know there [...]
The 100 City people you need to follow on Twitter this year, day four: Economists January 8, 2015 The financial crisis may have been a tough time for most of the City, but one group did pretty well out of it. There’s no doubt about it: economics has got sexy, as the popularity of everything from Thomas Piketty’s missive on inequality to “economics made easy” books such as The Undercover Economist, shows. Whether [...]
UK plastics firm RPC Group buys Icelandic rival Promens for €386m November 27, 2014 British plastic packaging manufacturer RPC Group announced yesterday it was set to buy Icelandic rival Promens Group for €386m (£307m). The Northamptonshire-based firm is looking to partially fund the deal by raising £200m in a fully underwritten one-for-three rights issue at £320m. The remainder will come from RPC’s existing revolving credit facility, which the [...]
Insurers power ahead to keep London on top September 21, 2014 INSURANCE COMPANY of the year Insurance is the one of the great success stories of the British financial services industry. Our insurers are powering ahead helping London to maintain its place as the centre of world finance. And the sector is contending with the government’s shake-up of pension rules by ending compulsory annuities. Almost all [...]
Europe’s biggest banks are still facing dozens more giant fines September 11, 2014 EUROPE’S biggest banks could face as many as 63 more giant fines between them over the coming years as regulators continue to comb through their misdeeds, analysts at Berenberg warned yesterday. There are 15 major issues still outstanding which could lead to fines of more than €100m (£80m) each, per bank. Those investigations include Libor [...]