Banking giant has Barclays revealed £1.3bn of write-downs on credit-related securities since the turmoil in financial markets began at the start of July, The Telegraph reports.
Facing huge pressure to reveal the details of its exposure to sub-prime mortgage-related securities, Barclays said this morning that it had an £800m write-down in October alone, coupled with an earlier loss of £500m in the third quarter.
The shares bounced 15 to 548p in early morning trading because there had been wide speculation about the extent of Barclays' sub-prime exposure, leading to huge gyrations in its share price as some feared the losses would be greater.
MERRILL LYNCH HAS hired John Thain, the current chairman of the New York Stock Exchange, to replace the ousted Stan O'Neal as chief executive and to start repairing the damage caused by the credit crisis, according to The Independent.
Mr Thain's appointment to one of the most powerful positions on Wall Street comes after four years during which he has transformed the NYSE, and marks a return to investment banking for a man who spent most of his professional life at Goldman Sachs, where he was chief operating officer until 2003.
And it gives Merrill Lynch a heavyweight new leader as it struggles with huge losses in its mortgage trading division. As losses ballooned to $7.9bn (£3.8bn), the debacle exposed serious flaws in the way the company managed the riskiest parts of its business, and it cost Mr O'Neal his job two weeks ago.
CARLSBERG AND HEINEKEN consortium today raised their offer for Scottish & Newcastle by 30p a share, valuing the Scottish-based brewer at £7.3bn, The Times reports.
Carlsberg called the new offer a “full and fair” price pointing out that it valued the group at a considerable premium to its value as an independent entity. The increased offer sent Scottish & Newcastle shares 3% higher to 766p in early trade.
In a statement, the consortium said that its offer for S&N represented a premium of 41% to the company’s share price of 531p in March 2007, before speculation began that an offer might emerge for the Scottish group.
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