The governor of the Bank of England has admitted failing to give enough guidance on its interest rates policy, reports The Guardian.
Mervyn King vowed that the Bank's monetary policy committee will improve the way it communicates, acknowledging that investors have sometimes struggled to work out how economic data might influence its decisions on interest levels.
Mr King said that economists needed "something to guide them how to interpret the future data as they come out, as they want to know how we are likely to interpret that data".
UBS has been forced to shut Dillon Read Capital Management, the high-profile hedge fund run by John Costas, the former head of its investment bank, and granted its independence less than two years ago, reports The Times.
Clive Standish, the bank's chief financial officer, said the decision to shut the unit came after DRCM suffered trading losses of about Sfr150 million managing the investment bank's money in the US mortgage-backed securities market, which has been struck by the downturn in sub-prime lending.
The bank also said runninng client money and its own proprietary trading positions outside the bank had become "too complex and expensive". Mr Standish said that over time the bank would save about $200 million a year from shutting the fund.
UBS will take a $300 million restructuring charge on the closure.
The endgame in Barclays Bank's £44bn takeover of ABN Amro is set to move a step closer today at a court hearing in Amsterdam, reports The Independent.
A Dutch judge is due to rule on a lawsuit brought by one of ABN's leading shareholders in a case that could force the bank to abandon a deal with Barclays.
The EU's Internal Market Commissioner, Charlie McCreevy, welcomed developments yesterday as a "watershed for shareholder rights activism". Whatever the outcome in the ABN takeover battle, "it will also encourage shareholders to be more vocal and demanding of management. This will be a good outcome for shareholder democracy in the EU", he added.
VEB, the Dutch investment group, has asked Judge Huub Willems to block ABN's plan to sell its US operation, LaSalle, to Bank of America for £21bn. The group told the court last week that the disposal represented a reorganisation of ABN and that shareholders should therefore have been consulted on the deal.
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