Alistair Darling appeared last night to be bowing to growing pressure to rethink his plan to increase taxation on non-domiciled foreigners living in Britain, The Times reports.
The Treasury is understood to be looking at possible concessions after a wave of protests raised fears of an exodus of wealth-creating foreigners from the City.
Officials were examining the detail of the proposals and looking at ways of “making clarifications”.
The Times understands they are considering introducing provisions to assure non-doms that the Treasury’s aim was not to pry into their world-wide tax affairs, but only to tax the earnings they bring to Britain.
American International Group, the world's largest insurer by assets, is to take a $4.88bn (£2.5bn) writedown as it became the latest victim to fall prey to the credit crisis, according to The Telegraph.
AIG, known in the UK for its AIG Direct brand as well as being Manchester United's shirt sponsor, will take the "hit" after auditors found it miscalculated the value of contracts protecting fixed income investors against losses. Shares in insurers on both sides of the Atlantic tumbled as a result, with AIG down $5.40 - 10.66% - at $45.28.
AIG's problem stems from the overstatement of derivative products known as credit default swaps (CDS) which are meant to isolate credit into units which can then be traded.
Société Générale, the bank at the centre of the biggest rogue trading scandal in history, has been forced to offer investors a heavier than expected discount to make sure its €5.5bn (£4.1bn) rescue fund raising completes without a hitch, The Independent reports.
Yesterday, SocGen officially launched the capital increase it had announced on 24 January in the wake of the €4.9bn trading losses incurred by unauthorised positions taken by derivatives trader Jérôme Kerviel.
The bank's chief financial officer Frédéric Oudéa outlined the structure of the rights issue, which comprised an offer price of €47.5, a 39% discount, on the basis of one new share for four existing shares. After the announcement, the bank's share price slid 4% to €74.59. The rights issue is underwritten by JP Morgan and Morgan Stanley.
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