Wednesday’s Headlines: RBS a "political football" as Goodwin loses knighthood
The British government has forced RBS chief executive officer Stephen Hester to give up a $1.57 million bonus, following a long-standing debate in the UK about bank bonuses. Hester’s sacrifice “takes the row to a new level,” the Journal notes.
“The treatment of Mr. Hester… confirms that RBS is now a political football,” according to the newspaper. “Any impression that the government is now calling the shots is sure to make it harder to retain and recruit high-quality staff. To the extent that hits performance, it will also hit the value of the bank.”
“Criticism of what are seen as 'fat cat' bankers has become a popular political sport in Britain, as ordinary citizens struggle with a weak economy and widespread layoffs,” writes the Journal.
Lloyds reshuffles top brass, "old guard" wholesale chief Tate retires. [Financial Times]
Goldman Sachs considers hiring former Treasury Secretary Geithner to run communications department. [Bloomberg]
U.S. charges former Credit Suisse traders with fraudulent CDO pricings. [New York Times]
Spanish bank clean-up begins, seen boosting Santander shares. [Wall Street Journal]
Icap cut jobs in Q3; plans to take a “tighter line” on pay. [Financial Times]
Citigroup fined $500,000 for firing branch manager allegedly due to age. [Reuters]
J.P. Morgan expanding metal warehousing facilities in Rotterdam, Chicago. [Reuters]
Hedge fund Andreessen raises $1.5 billion, more than doubling assets. [DealBook]