Corporate Governance

US casts wider net in UBS tax case

20 Feb 2009

The US government has embarked on a fishing expedition for 54,000 of the Swiss bank s account holders, just one day after UBS agreed to give up 250 names. The US is unlikely to hook Swiss authorities for this big a haul. But some scared American customers could bite.

Welcome back Arpe: let the rivalry begin

20 Feb 2009

Italian banking s enfant terrible Matteo Arpe is back. In buying a Milan boutique, he returns to the scene for the first time since quitting Capitalia after a bust up with chairman Cesare Geronzi. His nemesis this time may be Gerardo Braggiotti, Italy s top private banker.

Merrill-style bonus heist foiled by Commerz

18 Feb 2009

BofA lamely tolerated bonuses at hapless Merrill after agreeing to rescue the firm. But Commerz has killed Dresdner Kleinwort s pretakeover E400m bonus pledge. It s a raw deal for bankers who stuck around for a payday. But they should know best how cutthroat the business is.

Lloyds should plan orderly exit of Blank, Daniels

17 Feb 2009

The credibility of the UK bank s chairman and CEO has been greatly undermined by last week s revelation of fresh losses linked to the takeover of HBOS. Alternative leadership could help restore confidence. But neither succession should be rushed.

Congress stimulates financial innovation

16 Feb 2009

Thanks to the 11thhour antibonus amendment to the stimulus bill, Wall Street's finest have been mobilised. Not on fixing the financial system, but rather on getting around this misguided legislation and paying back Tarp prematurely.

It can’t be that hard to find a BP chairman

16 Feb 2009

Paul Skinner s apparent withdrawal from the running to become chairman of BP should not be such a huge setback for the oil major. A proper international search should have thrown up more than one alternative candidate to the underfire Rio Tinto chairman. Here are a few names.

Congress stimulates financial innovation

16 Feb 2009

Thanks to the 11thhour antibonus amendment to the stimulus bill, Wall Street's finest have been mobilised. Not on fixing the financial system, but rather on getting around this misguided legislation and paying back Tarp prematurely.

Take note: nationalised banks really are bankrupt

13 Feb 2009

A UK court ruled against holders who wanted more than a pittance for their Northern Rock shares. Aggrieved Fortis investors are demanding a better deal, and JC Flowers thinks Germany should pay 10 times the market rate for its Hypo stake. The law is unlikely to sympathize.

BP shouldn’t rush to name new chairman

11 Feb 2009

Paul Skinner was tipped for the top job at the UK oil producer, but the Rio Tinto chairman has tarnished his record with a big cash acquisition at the top of the market, and an ongoing fight over raising capital to pay for it. There s no rush to make a decision, so best to wait.

Crosby wise to make speedy exit from FSA

11 Feb 2009

The former HBOS chief s resignation makes things easier for the UK regulator. His position looked awkward even before he was ensnared in the bank s whistleblower scandal. But doing the honourable thing may also be selfinterested, if it limits questions about his HBOS legacy.

US bank CEO hearings underline widespread blame

11 Feb 2009

Eight bank bigwigs lined up and took flack for losses, bonuses and corporate jets. But one Congressman admitted that his industry government also had a credibility problem. So did some of his colleagues questions. Between the two groups, there s a lot of rebuilding to do.

Boom-time whoops drowned out HBOS whistleblower

11 Feb 2009

Paul Moore claims he told the UK lender s board it ought to slow down and was fired from his job as head of regulatory risk. You didn t need to be a risk wizard to see fast growth funded by wholesale money. But in 2005, no bank board would have called that a serious problem.

Rio Tinto gaffe leaves board discredited

9 Feb 2009

The mining giant has lost its chairman a mere three weeks after giving him the job. It seems Rio s nonexecs didn t do their homework on Jim Leng, and didn t much like his questioning of plans to raise capital from Chinese miner Chinalco. The board needs to explain itself.

Less is more on RBS’s board

6 Feb 2009

New chairman Philip Hampton has moved fast to strip the UK bank s board of surplus nonexecs. Having a smaller board, even after some new arrivals, should bring discipline and focus as RBS weighs the potentially conflicting interests of government and minority shareholders.

Temasek makes progressive CEO choice

6 Feb 2009

The Singaporean sovereign fund is breaking the mould by appointing foreign national and former BHP Billiton boss Chip Goodyear as its new CEO. Goodyear replaces Ho Ching, the prime minister s wife. For Temasek, and sovereign funds everywhere, it s a radical move

US pay cap is dangerously blunt instrument

4 Feb 2009

The president is right to want to constrain pay while taxpayers are on the hook. But to avoid an exodus of talented executives, Obama should consider more flexible methods than a straight $500,000 cap. One might be to let banks pay more, but only if they also repay taxpayers.

Obama should tread carefully around bonuses

29 Jan 2009

The US president is castigating banks that received government funds yet paid bonuses. He s right that many payouts are excessive and it makes great political theatre. But policymakers should use caution when dictating pay issues it could come back to bite them.

What’s the difference between Citi, RBS and BofA?

29 Jan 2009

All three banks have lost billions in the credit crisis and gone cap in hand to the authorities for aid. But Citi and RBS have held executives accountable and even started to shake up their boards. Bank of America, by contrast, has done nothing. That surely has to change.

RBS boardroom undergoes overdue revolution

29 Jan 2009

During the gogo years, shares in the UK bank suffered from fears that a parochial board couldn t rein in boss Fred Goodwin s ambitions to build a global empire. The board is finally becoming more diverse. But only now the bank has beaten a forced retreat.

Schaeffler’s Conti deal proves too clever by half

26 Jan 2009

The familyowned German firm borrowed E6bn to sneak control of carparts maker Conti last year. Now the value of both groups is plunging, and it s not clear how Schaeffler will meet its borrowings. It should have stuck to what it knew.