The Britain’s Prime Minister Gordon Brown attacked the U.S. bank Goldman Sachs, stating that it was “morally bankrupt”. The reason for criticism of the financial institution provide the prosecution that she manipulations financial markets. Brown, who is fighting for a new mandate at the head of the British government, asked Britain’s financial regulators to conduct their own investigation of the banking sector. “Banks are still a problem. They are a risk to the economy, citing Prime Minister, quoted by FT. German authorities also announced they will begin their own investigation of the case and eventually will take legal action against Goldman. This gives rise to failure of the German IKB Bank in 2007 as a financial institution became one of the first victims of the crisis. Goldman Sachs will certainly be in focus throughout the week because after the failure of the bank’s shares by almost 13 per cent on Friday will be interesting how they will continue to trade with them.
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Spain to the European Commission presented a plan to curb its budget deficit, which reached 11.4 percent of GDP last year, cited by EUobserver. And Greece to the European Commission asked the UK to shrink the deficit to maximum limit of 3 percent for the euro area. Under the Madrid will have to reduce its budget deficit to 9.8 percent of GDP this year, up 5.3 percent in 2012 and in 2013 will have a limit of 3 percent, down in the Pact for Stability and Growth of the EU. Yet last week the government approved a saving of 50 billion state spending over the next four years. Despite the measures which Spain is prepare to take the ratio between debt and GDP will continue to grow and will reach 74.3 percent in 2012, according to a European Commission forecast. However, in this respect Madrid is actually much better presented as an average for Europe last year, debt-GDP ratio was 78.2%. In Spain it was 55.2%.
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The unemployment in Britain unexpectedly fell for the three months to November show the data of national statistics. This was considered better than the analysts, according to the news gives them hope that the worst of the labor market may be in the past. Reported a decrease from the first 18 months since According to official statistics show that unemployment has fallen by 0.1 percent point to 7.8 percent from the previous reporting period at the end of October. Experts expect the level of the indicator continues to rise and reach 8%. The number of applications for social benefits for unemployment in Britain in December will be decreased 15.2 thousand persons. In expected to decline by 2.5 thousand persons, after a decline to 10.8 thousand in November, which is the largest decline since April 2007.
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The Banks in Britain should be obliged to disclose the number and names of employees with a salary of over 1 million pounds annually. That says a proposal by the government commission that deals with control of the banking system. The document, whose author is the former head of Morgan Stanley International, David Walker, offers other measures to reduce the risk of the banks operations. It recommends strengthening the role of shareholders and employees who are not related to the operational management of banks submitted AR. “Institutional investors should not be so passive and be ready to intervene at an early stage in the event that they see weaknesses in management,” said Walter. “Early preventive measures on the part of shareholders can save considerable money and time at a later stage,” he said.
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European companies will remain under pressure to restructure started despite economic recovery, experts warn the restructuring, said on Sunday. Survey of experts conducted by the company Alix Partners, shows that over 50 percent of them expect to double the work of restructuring of companies next year. This year there was a wave of bankruptcies and credit rolled over falling demand. Among the affected were the large chain retail Arcandor the German and British Woolworths, and many companies in the real estate sector and entrepreneurs. According to the survey among those at risk of bankruptcy companies are those companies owned by equity, as they have many loans from the time the credit boom. Earlier this month the credit rating agency Moody’s said that the level of arrears of European companies that have “junk” rating (awarded to high-risk securities) increased to 9% – very sharp increase over last year although lower than initial expectations. By Moody’s predicts that this level will peak in the fourth quarter of this year.
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