Date post: | 29-May-2015 |
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2. 1. City insider trading ring
3. 7 bankers of South-London were arrested by the Financial
Services Authority (FSA) & Serious Organised Crime Agency
(SOCA).
4. The investigation is focused on a period of 3 years. Between
2007 and 2009, there were major capital raisings for three
companies.
It proceeds Barclays, Mitsui Banking Corporation, the estate group
Segro and house-builder Taylor Wimpey.
5. Itseems like the largest UK equity dealsof recent years leaked
to an insider trading ring. They used inside information to place
trades for a raising capital and to make a profit.
6. 7 individuals at City Institutions have been arrested on
suspicion of being involved in a insider dealing ring. Now they are
released on bail. It seemsthat they made large profits
7. The persons who are involved so far are:- Clive Roberts
- Martyn Dodgson,
- Julian Rifat,
- Graeme Schelley
- Ben Anderson
- IrajParvizi
FSA is looking because there is a list of nine names of suspected
traders.
8. 2.Rescue plan of The Royal bank of Scotland
9. The Royal Bank of Scotland exists of 84% by taxpayer
8% is reserve when the bank gets in real trouble.
10. RBC is planning a restructuring of the balance sheet.
But RBC needs time till April the 30th to prepare for this rescue
plan.
11. The plan is to give the chance to the bondholders to replace up
to 15bn of debts. Much of the debt deals with 60 to 70% of face
value, RBS offers to buy it back at a discount. The profit will go
straight through to the capital so RBS created a larger buffer
against bad debts.
12. With this idea they hope to have an increase by1bn to 1.5bn of
their core capital base.
Actually they will crystallize a loss , they will offer more than
the market price and the bonds will carry a coupon.
The bonds will be reverse into new debt securities, cash and
equities.It seems like much bondholders will take the offer.
13. RBS examined the contingent capital , consideringto replace the
8bn Government line but the finance director, Bruce Van Saun, said
they have decided to exclude an instrument because the benefits are
minimal.
14. 3. The Greektragedy
15. The Greek problem started when its government produced an
incorrect budget to the European Commission. Afterwards the real
deficits of the country put pressure on the Euro currency, not only
because of Greece but also of other mostly Mediterranean
countries.
16. The French and German government is deeply divided over the
question how to resolve the Greek problem in the European
Union.
- The eurozone and the Euro currency is facing instability. Nicolas
Sarkozy,saidthe eurozone must act firmly to restore the confidence
of the investors en the president of the European Central Bank
considers the intervention of the IMF as inappropriate.
17. - On the other hand, the German government thinks the Greek
should ask the help of the IMF.
The future of the euro currency is threatened because not only
Greece, but also Spain, Portugal, Ireland and Italy are on the list
of vulnerable countries. Some Germans even think Greece should ask
for bankruptcy.
18. The European Commission must come to a clear political
conclusion and order stricter rules to the member states.
19. Investors still ask important risk premia and the debt interest
burden of Greece is to high.
The Dutch government is asking for a partly intervention of the
IMF, but Spanish and French politicians want to keep the IMF out,
because they dont want to let down a country that is member of the
eurozone.
20. Because of the Greek problems, the Euro currency is moving
downwards and their might be an important role of hedge funds
abusing the credit default swaps of the Greek debts.
21. Greece has to tighten his income by taxes and the rescue
packages probably cannot solve the solvency problems of the
state.
The 30bn loans by eurozone states will not be sufficient and it is
not certain they are legally correct. Some fear its a bottomless
pit.
22. The IMF would provide a further 15bn but the conditions are not
clear yet. Its managing director said the deflation (with falling
prices)in Greece is necessary. Nevertheless, it should help Greece
at least to the end of this year.
23. This is not a typical UK problem but I chose this subject
because of its large importance to the whole European
Community!
The always strong Euro suffered on the international markets
24. 4.Dip in inflation
Last February, the Consumer Price Index went down to 3% while it
was 3.5% for the last 14 months.
There are no access accounts that provide enough interest to make a
good return of ones money.
25. Consequently inflation erodes the value of our money but most
people are satisfied with a short-term commitment.
26. Conclusion
1. It is clear that the use of inside information is prohibited.
Without punishment of such abuses the pathway would be wide open
for further illegal activities. People should have maximal trust in
their bankers.
27. 2. Its smart of the Royal Bank of Scotland to built up a
reserve for bad debts. Nowadays you never know whats going to
happen in the economic world.
28. 3. Solidarity between the member states of the eurozone is
absolutely necessary to maintain the strength of the Euro currency.
These states should be able to resolve their own problems. Its a
sign of weakness that they called for help from the IMF.
29. 4. The situation proves it is still extremely difficult to
maintain the value of your money if you only want to use classic
investment techniques. On the other hand, stock markets made good
profits but many people hesitated to make use of them because of
the 2008 crash.