AROUND 2,500 complaints have been received by the Financial Ombudsman Service in relation to precipi...
AROUND 2,500 complaints have been received by the Financial Ombudsman Service in relation to precipice bonds that are nearing maturity, The Daily Telegraph reports.
Some of the biggest bonds are due to mature next month and will bring millions of pounds in losses to their owners unless stock markets rally sharply - in some cases by 100%.
Precipice bonds have overtaken split capital investment trusts as the second biggest source of complaints to the FOS after endowments, The Telegraph adds.
AN INTEREST RATE cut looks more likely by the next meeting of the Monetary Policy Committee says the FT today, quoting Bank of England deputy governor Andrew Large.
He was one of just two MPC members to vote against February's interest rate cut, saying at the time that it was important to keep a lid on consumer spending in order to ensure people were not caught out by excessive debts.
However, commenting ahead of next week's MPC meeting, Large says: "my concern is somewhat less than it was".
That, says the FT, means that the latest figures showing a slowdown in consumer spending could be the trigger for Bank of England hawks to stop resisting another 25 basis points cut to the base rate.
MOST PAPERS delve into yesterday's news that Wall Street's biggest investment banks are going to have to pay a $1.4bn fine and get used to new banking regulations, but it falls to The Times to say what many believe privately about bankers of all sorts.
"Wall Street's efforts to persuade the world that investment banking now is very different...might have been more persuasive had not some of the banks tried to argue that their fines should be eligible to set against tax," the paper says.
"When some in the industry believe that a fine for shady practices is a legitimate business expense, a degree of skepticism about morals is likely to be perpetuated."
The outcome of the fines and the new rules will, in the long run, be the end of in-house equities analysis by investment banks, because clients will want to buy cheaper analysis from elsewhere in return for lower banking fees that may in future be itemised, the paper adds.
A NEW ALTERNATIVE to simply closing final salary schemes is described in today's The Scotsman, involving First Group and 9,000 of its employees.
The deal means that employer and employee contributions will be raised, benefits will be based on average earnings throughout the period of employment instead of earnings at retirement, but employees will still be better off, the paper says, because the employer will pay 60% of the new contributions.
Caring for children and elderly relatives
Similar to June 2007
Square Mile’s series of informal interviews
Fine reduced to £60,000
Two roles created