More than half of the giant banks being "stress-tested" by the US government could be required to raise additional money to recapitalise the nation's financial system, survive a long recession and boost lending that will kickstart the economy.
With the results of the tests due to be published tomorrow evening, officials are continuing their final discussions with the 19 institutions, The Independent reports. Several are believed to have argued the Treasury out of their original demands, but about 10 are still expecting to be told to raise money.
Ben Bernanke, the chairman of the Federal Reserve, one of the regulators working with the Treasury on the tests, said yesterday that repairing the banking system was vital if the early signs of economic recovery were not to be snuffed out. Full story...
The last board member from Sir Fred Goodwin's reign at Royal Bank of Scotland (RBS) will receive a pension worth £9.8 million when he retires next year in the final clearout of the former chief executive's lieutenants, which was announced by the bank today, according to The Times.
Gordon Pell, who is being replaced as the executive board member responsible for RBS' UK retail arm, is entitled to a pension worth £517,000 a year. Mr Pell has been with RBS, now majority-owned by the taxpayer, since 2000 when he moved from Lloyds TSB, now known as Lloyds Banking Group since rescuing HBOS, and which is also now partly state-owned. Full story...
Britons will have to work until the age of 70, at least five years beyond the current retirement age, if the Government is to stand any hope of bringing public debt under control over the next decade, a report claims.
The Daily Telegraph says the scale of the debt that Gordon Brown takes on to fight the economic crisis means that future governments will have to consider drastic measures to ease it, according to the National Institute for Economic and Social Research (NIESR).
The think tank said it would be all but impossible for the Government to return Britain's total public debt to 40 per cent of gross domestic product, currently equivalent to £600billion, until 2023. Full story...IFAonline
To promote 'long-term investment'
Switching 'hard and expensive'
Smaller funds still packing a punch
To drive progress