Unicredit/Mediobanca deal would bode ill 5 Jan 2009 Italians have been roused from the last of their holidays by an unsourced report predicting a merger between the country s second largest bank and its most powerful advisory boutique. The putative deal makes little sense.
Madoff scandal underlines need for SEC overhaul 5 Jan 2009 The alleged mother of all Ponzi schemes happened under the dilapidated US regulator s nose. Its mishandling of the case, excoriated today in Congressional hearings, is the ultimate moralebuster. To rebuild the SEC will require political backing and more industry expertise.
Dresdner deal price keeps rising 5 Jan 2009 Germany s Commerzbank wants state capital for Dresdner, the rival it is acquiring. The cost of its original E8.2bn rescue has already risen once. The deal may be wobbling but it probably won t topple: Dresdner's parent, Allianz, and the German authorities can t afford to let it.
Admitting Jobs’ illness is first step for Apple 5 Jan 2009 The communicationschallenged company finally confirmed scuttlebutt about Steve Jobs health. The problem isn t what was said, but in what wasn t for several months. Apple should articulate succession plans to restore credibility with investors.
GM unlikely to meet positive NPV hurdle 5 Jan 2009 In return for its federal loans, the carmaker must present a plan to achieve a positive net present value. Even with cost cuts, debt restructuring and union concessions not to mention rosy assumptions about sales the arithmetic doesn t add up.
SEC could ease fair-value accounting problems 5 Jan 2009 The SEC continued to back marktomarket accounting in a yearend study. However, it didn t address the system s main problems of distorted incentives and procyclicality. But disclosed hidden reserves could resolve marktomarket s defects while retaining its benefits.
IndyMac buyers extract super value deal 5 Jan 2009 The private equity firms buying the US bank will get $23bn in loans and securities, mortgage businesses and other assets for an outlay of just $1.6bn in cash. Governmentrun FDIC also handed them several other benefits. The agency should drive a harder bargain next time.
Stuart Rose needs to set out bold strategy at M&S 5 Jan 2009 The UK's premier high street retailer is strategically and financially challenged. The shares have underperformed and investors are unhappy with its corporate governance. At least Stuart Rose, the executive chairman, still has some cards to play.
Obama’s tax stimulus looks sensible but still risky 5 Jan 2009 Devoting 40% of his stimulus package to tax cuts is smart, bipartisan and should reduce the plan s unproductive public spending element. With money supply zooming, it may result in a shortterm economic boost. But the inflation and deficit hangover may be nasty nonetheless.
ECB should expand its remit 5 Jan 2009 The vice president of the eurozone central bank wants his institution to have more authority over banks. He s right. The crisis has shown monetary policy needs to be integrated with institutional regulation. But Eurozone governments may not be ready for a truly powerful ECB.
EU must take Ukraine to task over Gazprom conflict 2 Jan 2009 The gas supply row between Ukraine and Russia s Gazprom pits two monopolies Russian gas and Ukrainian pipes against each other. It could have been avoided by Ukraine paying Russian bills on time. With European supply at risk, the EU should urge Kiev to put its house in order.
Personal View: A modest proposal to save the world 2 Jan 2009 The UK prime minister, Gordon Brown, suggested it was a slip of the tongue when he recently said his bankbail out scheme had saved the world . But it s not hard to imagine Brown setting out a modest plan to be the world s saviour, says Ian Campbell.
India-Pakistan conflict would cost both dearly 2 Jan 2009 Mumbai's Taj hotel may have reopened after November's terror attacks, but tension in the subcontinent remains dangerously high. India blames Pakistani militants for the atrocity. Leaders of both nations say they don t want a war. In different ways, neither can afford one.
Chinese 3G invites protectionist row 2 Jan 2009 Thirdgeneration mobile ticks many Chinese government boxes: it will create jobs, boost spending and advance China's technical standing. With 600m users and $40bn of investment at stake, foreign firms want in but the state may have other ideas.
UK ban on short-selling should be lifted 2 Jan 2009 Some politicians think it premature for bank share prices to be the target of shortselling again. But the ban has proved ineffective in halting shareprice volatility in bank stocks. Its removal might actually bolster confidence by facilitating genuine price discovery.