FBI agents arrested two former Bear Stearns hedge fund managers at their homes yesterday, the first Wall Street executives to be formally charged by the US Government in relation to the credit crunch, The Times reports.
Within hours of arresting Ralph Cioffi and Matthew Tannin, the Justice Department announced that it had charged more than 400 people, including 50 in the previous two days, in a three-month sting operation relating to cases of mortgage fraud that have collectively cost the victims an estimated $1bn (£507m).
Mr Cioffi and Mr Tannin were led in handcuffs from their homes respectively in Tenafly, New Jersey, and Manhattan, processed in the FBI's New York office and taken across the East River to a Brooklyn federal court.
BARCLAYS IS UNDERSTOOD to be in the final stages of negotiating a capital tie up with one of Japan’s largest financial groups in a deal that could see a 100bn yen (£470m) injection of cash for the battered British lender, also according to The Times.
Sources close to the proposed deal suggest that the capital infusion to Barclays stretched balance sheet will come from Sumitomo Mitsui Banking Corporation (SMBC).
The capital injection is expected to take the form of a private placement of shares that would leave Japan’s third largest financial giant with a stake of 2% or 3% in the British lender.
AN UNPRECEDENTED MEETING of oil producers and users in Saudi Arabia this weekend, aimed at ending the rise in petrol prices, could propel the cost of energy higher, Gordon Brown was warned last night, The Guardian reports.
As the prime minister prepares to fly to the summit in Jeddah, a leading energy academic said the chances of finding a suitable solution to rocketing prices was limited because the OPEC cartel of producers, western oil companies and ministers in consuming countries have conflicting views on what has caused this year's 40% rise in crude.
Failure to find an eye-catching initiative for what Brown has called "the biggest problem facing the world" could make the situation worse, said Dr Bassam Fattouh at the Oxford Institute for Energy Studies.IFAonline
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till