Curator / Politics Today / World Affairs / Europe Today / UK /
October 31, 2008
UK
Barclays Secures $12B Capital Injection · Barclays finalized an $11.8 billion capital injection Friday – including a $9.4 billion investment from private investors in Qatar and Abu Dhabi – in a move that will allow it to meet new capital ratios mandated by the U.K. government for Britain's largest banks. (FT)
Barclays Chases $10B Capital Injection · Barclays is reportedly close to securing a $9.8 billion investment from the Qatar Investment Authority and an Abu Dhabi-based sovereign wealth fund in a move that would help it meet new U.K. capital benchmarks. The bank also discussed investment possibilities with Libya’s sovereign wealth fund. (FT)
UK Bans ‘Preachers Of Hate’ ·
Preachers of hate who have been banned from the UK will be refused entry to the country forever unless they make a public renunciation saying they no longer preach violent extremism. (London Times)
Brown: China, Gulf States Should Help IMF · U.K. Prime Minister Gordon Brown said Tuesday China and the Persian Gulf states should substantially increase their conributions to the International Monetary Fund 's $250 billion emergency reserve to help nations struggling with the financial crisis. (Bloomberg)
Dixon/Hadas: How to Control a Currency Panic [OPINION] · Edward Hadas and Hugo Dixon of Breakingviews.com argue that China, Japan, the United States and Britain should immediately rally world governments to defend target exchange rates or risk a complete breakdown in the global trade system. (NYT)
Barclays Seeks Capital From Russian Banks · Barclays is reportedly pursuing investments from two state-backed Russian banks, VTB and Sberbank, in an effort to avoid selling equity stakes to the U.K. government to maintain capital requirements. Barclays said it plans to raise $10.43 billion from private sources. (WSJ)
Treasury Closes Door For U.S., U.K. Insurers · The U.S. Treasury has reportedly signaled to American and British insurance companies that they will not have access to emergency funds through the government's $700 billion bailout program, emphasizing monies are reserved for "federally regulated financial institutions that lend money." (The Times)
FSA Extends Ban On Short-Selling · The U.K.'s Financial Services Authority said Wednesday it will uphold a ban on short-selling of financial stocks following a 30-day review of the new measures. However, the regulator said companies will no longer be required to disclose their daily net short positions. (The Times)
London’s Tory Mayor Endorses Obama [OPINION] · London's Conservative Party mayor, Boris Johnson, writes that Sen. Barack Obama should be elected president. (Telegraph)
UK Takes Control Of Royal Bank of Scotland ·
The British government took control of the Royal Bank of Scotland, injecting it with $40 billion, and moved to take over HBOS as well after a buyout by Lloyds appeared to collapse.(London Times) The treasury will guarantee interbank lending, install its own boards, mandate lending to small businesses, and limit bonuses.
European Leaders Agree To Crisis Plan · European nations agreed late Sunday to take equity stakes in distressed banks and guarantee bank lending for periods of up to five years in a bid to jump-start frozen credit markets. Officials declined to put a price tag on the plan. (NYT)
U.K. Banks To Seek Capital Injections ·
Royal Bank of Scotland will reportedly request a $26 billion cash injection as part of the U.K. government's new rescue plan to stabilize the nation's banking industry. Meanwhile, Halifax Bank of Scotland, Lloyds TSB and Barclays will reportedly seek $17 billion, $12 billion and $5 billion respectively. (The Sunday Times)
Icelands’ Banks Frozen ·
Without assistance from the IMF or other countries, Iceland's financial situation is dire and could spread. (Forbes) Its banks' losses amount to $74 billion or $230,000/per capita -- compared to just $3,700/capita in the UK.
Bush Meets G7 Ministers, No New Strategy ·
President Bush met with financial officials from the wealthy Group of Seven countries and pledged a global response to the credit crisis. (Washington Post) But he offered no new strategies in the foreshortened meeting, lasting only a half-hour.
Paulson Defends G-7 Communique · The Group of Seven issued a communique on the first day of their meetings in Washington, DC. It promised to take "decisive action and use all available tools" without specifying what they are beyond supporting the Financial Stability Forum's recommendations. (WSJ)