Financial regulators have reached a deal to force global banks to double the spare cash they hold in the biggest shake-up since the economic crisis nearly brought down the system.
Mervyn King, Governor the Bank of England, is one of 27 "heads of supervision" who on Sunday helped agree on a deal in Basel, Switzerland, writes the Telegraph.
Details of the Basel III regulations were unveiled on Sunday night in a move designed to prevent banks from running out of liquidity as they did in the autumn of 2008.
The new rules, to be phased in between 2015 and 2018, demand that banks hold 4.5% of common equity and retained earnings. The current minimum for core Tier 1 capital is 2%.
Double-dip recession looms as jittery private sector cuts back
Britain risks sliding into a double-dip recession before the end of this year as the government's promised austerity measures spook businesses into their own hefty cutbacks, according to research.
The accountancy firm BDO warned today that confidence among UK companies had been hammered in recent weeks, reports the Guardian.
Businesses are now at their least optimistic since the depths of the recession last year, and BDO believes this indicates that the economy may start contracting again as early as the fourth quarter of 2010.
Peter Hemington, BDO partner, said business leaders had heard George Osborne's tough talk on spending cuts, and had resolved to slash recruitment and rein in other expenditure. This is a mistake, Hemington believes, as the real pain will not be felt until 2012 and beyond.
Deutsche Bank to raise £8.1bn to complete Postbank takeover
Deutsche Bank announced plans today to raise at least €9.8bn (£8.1bn) to bolster its capital position and help it complete the takeover of Deutsche Postbank.
Germany's biggest bank said it intended to offer between €24 and €25 a share for the 70% of Postbank it does not already own, writes the Guardian.
The move comes as regulators gathered in Basel to hammer out a deal on new capital reserves that is expected to result in banks being required to hold more capital.
In a toughening regulatory environment, Deutsche Bank's takeover of Postbank - Germany's largest retail bank in terms of customer numbers - would reduce its reliance on risky investment banking and give it more exposure to its home market.
Greece will not require further cuts, says George Papandreou
The arduous campaign to pull debt-stricken Greece out of crisis can be achieved without further austerity, the Greek prime minister, George Papandreou, pledged yesterday as IMF inspectors prepared to fly into the country.
As the recession-hit nation braces for what many fear will be an unprecedented winter of discontent, the socialist leader ruled out further fiscal reforms, even if he acknowledged that budget revenues were lagging, writes the Guardian.
There would, he said, be no more cuts or public-sector layoffs, the measures that have driven thousand of Greeks on to the streets and spurred violent protests.
UK firms plan to freeze pay of top staff
More than half of Britain's biggest companies will freeze the salaries of their top management this year, according to Deloitte.
Many top executives face a further two-year salary freeze, even though two-thirds of UK executives were given no pay increase in 2009, writes the Independent.
Even those lucky enough to receive a pay rise are likely to see their salaries increased by an average of only 3%.
Stephen Cahill, a Deloitte partner, said the report showed the years of plenty were "well and truly over".
He added: "Companies are now recognising that increases for executives must be considered fair and reasonable in the context of current business circumstances and the pay and conditions for employees more generally."
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