The Bank of England released a lengthy financial stability report this morning. Among other things, it calls on UK banks to ‘limit distributions’ (AKA bonuses) this year if, “earnings are insufficient to build capital levels.”
It also advises that banks stop focusing on ROE, stop focusing on ROA and start focusing on leverage ratios, which it wants them to disclose no later than the beginning of 2013. Then there are some interesting charts, one of which is shown below, suggesting that the British bank you might want to be working for in 2012 is…HSBC.
In other news, Sergio has stamped some authority on UBS and is doing away with the head of risk, Maureen Miskovic, who was hired only in January.
Maureen will be replaced by the 49-year old Briton Philip Lofts, who’s worked at UBS for no fewer than 20 years. Lofts was Chief Credit Officer at UBS between 2005 and 2008, a role which apparently involves responsibility for the overall quality of a bank’s lending portfolio. UBS’s subprime losses from this period total around $50bn; in 2008 it blamed them on a faulty approach to risk management. Maureen’s exit, meanwhile, apparently has nothing to do with Kweku.
RBS finance director appears to confess that much of that “gift” from Central Bankers and taxpayers to the industry has been squandered on remuneration. (Guardian)
Rumour that a major bank – probably French – nearly went under yesterday. (Alphaville)
Tim Linacre, who has worked at Panmure Gordon for 21 years and been the chief executive for 6, is stepping down as the broker prepares to make a loss; Altium closed its securities business yesterday and made 30 people redundant. (The Times)
Earlier this month, Collins Stewart and Evolution, both warned they expected to lose money this year in their broking operations. (Telegraph)
SocGen’s cutting 200 jobs in the US. (Bloomberg)
I am too old to get an MBA? (Poetsandquants)
The human brain is limiting data growth. (TechnologyReview)