The future of Northern Rock remains in the balance, with reports over the weekend suggesting that private equity groups had been given a "green light" by the Treasury to take on the stricken mortgage bank's assets," The Independent reports.
Lloyds TSB was also reported as having taken a "second look" at the Rock, after abandoning an earlier bid of 200p to 300p per share, but may not proceed with a takeover if the Government does not extend its guarantees to Northern Rock when it comes under new ownership.
Northern Rock has borrowed about £8bn from the Bank of England over the past fortnight to fund its activities, and worries persist that the high cost of that borrowing, at 6.75 per cent, will have an increasingly deleterious effect on Northern Rock's profitability. However its mortgage book, currently acting as collateral with the Bank of England is usually seen as being of good quality and it is this, rather than the tarnished brand and other assets of the business, that has caught the attention of potential buyers.
UBS HAS ANNOUNCED the departure of two senior executives after it emerged this morning as one of the biggest victims of the global liquidity crisis, according to The Times.
The investment bank said it would shed 1,500 jobs as it unveiled $3.4 billion (£1.7 billion) losses in its fixed income portfolio. Huw Jenkins, the head of its investment bank, will step down to an advisory role. Clive Standish, the chief financial officer will leave.
UBS recorded a third quarter loss of between Sfr600 million (£251 million) and Sfr800 million in the wake of the American subprime turmoil, its first quarterly loss since the Asian financial crisis of 1997.
LONDON HAS MAINTAINED its position as the world's leading financial centre, extending its lead over nearest rival New York, according to a report released today, The Telegraph reports.
But below-par transport infrastructure threatens to diminish the capital's status, with concerns growing about overcrowding, high prices and delays, the report says.
The second Global Financial Centres Index rates the two cities as the world's "only truly global financial centres", well ahead of other centres in the top five – Hong Kong, Singapore and Zurich.
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