The interest rate the European Central Bank pays banks parking their money with it is zero.
It started as an innocuous insurance product but grew into one of the world's biggest ever consumer mis-selling scandals. Daniel Garrahan reports on how mis-sold payment protection insurance has tarnished the UK banking industry's reputation.
While South Korea continues to establish itself as a growing Asian economy, some of the country's banks are struggling to go global. The FT's Simon Mundy talks to Euh Yoon-dae, chief executive and chairman of KB Financial Group, about the challenges faced by the country's banks and what the financial services sector can expect from the upcoming presidential election. For more video content from the Financial Times visit: http://www.ft.com/video
Before the financial crisis the market believed banks were worth as much as four times the value accountants had written in their books. Since 2008 values have collapsed to much less than par.
Speculation of a new stimulus in China to soften its slowdown has encouraged stock markets, but the disappearance of Xi Jinping, the presidential heir apparent, just adds to the uncertainty. James Kynge, principal of China Confidential, the FT's China research service, discusses the signs of a pickup in activity and the impact of a the opacity of the leadership in the world's second largest economy. Related articles: http://www.ft.com/cms/s/0/9c603d8c-fc0e-11e1-af33-00144feabdc0.html http://www.ft.com/comment/columnists/james-kynge For more video content from the Financial Times visit: http://www.ft.com/video http://www.FT.com/
Mario Draghi, ECB chief, will be given authority over all eurozone banks under new plans (Reuters) All 6,000 banks in the eurozone would be governed by the European Central Bank (ECB) under new rules being sketched out by the European Commission (EC), according to a German newspaper report, marking out the first step to the much-anticipated monetary union. The plans, agreed at a recent meeting between EC president José Manuel Barroso's closest advisers and Michel Barnier who is responsible for financial regulation in the eurozone, will be formally unveiled on 12 September - and will be implemented as soon as possible if agreed. "We will provide the central bank with all the tools needed to supervise banks effectively," French European Commissioner Barnier told Süddeutsche Zeitung , a Munich-based newspaper
Infrastructure investment in the UK will help pull the recession-hit economy to recovery, said the BCC (Reuters) Significant infrastructure investment and the creation of a business bank to support the financing of smaller firms are essential to pulling the UK economy out of its spiralling recession, according to one of the country's leading industry lobby groups. This action must be taken, said the British Chambers of Commerce (BCC), to negate macroeconomic headwinds slowing emerging market growth along with the continued crisis in the eurozone, the impact of the government's stinging austerity measures, volatile commodity prices, and low business investment.
Banks found to have manipulated the London Interbank Offered Rate (Libor), perhaps the world's most important interest rate benchmark, could be liable for billions of dollars in lawsuits from a slew of financial firms and investors affected by the distortions, according to reports. Nacquarie Research said in July that banks would have to pay $176 billion, based on Libor rates that were understated by 0.4 percentage points during 2008 and 2009, the Wall Street Journal reported . Keefe, Bruyette & Woods Inc.
Standard Chartered shares are down 20 per cent after the New York State financial regulator accused the UK bank of hiding $250bn of transactions with the Iranian government.
Sponsors that spent millions to be associated with the Olympics will be spending large amounts shmoozing clients with corporate hospitality.