#AFN2014 “Indeed, in accordance with the amendments introduced to the 1961 law (Foreign Assistance Act) a few years ago the provision of foreign assistance is prohibited to ‘the government of any country whose duly elected head of government is deposed by military coup or decree.’ The relevant provision is contained in 22 US Code § 8422,” the Russian Foreign Ministry said in a statement”
#AceFinanceNews (Reuters) – The Bank of England announced an overhaul of the way it works with banks and financial markets on Tuesday as it faced growing criticism of its response to possible manipulation of foreign exchange rates.
Bank Governor Mark Carney answered questions from lawmakers for four-and-a-half-hours, a large part of which was devoted to the Bank’s response to allegations that key currency benchmarks had been rigged.
Carney said a new deputy governor position, responsible for banking and markets, will be created as part of the shake-up.
“One of the first tasks of that individual is that he or she will conduct a root-and-branch review of how we conduct market intelligence,” Carney said.
Details of the new structure will be announced on March 18.
As lawmakers seized on the case to revive their demands tougher oversight of the Bank, Carney stressed the seriousness of the foreign exchange case and compared it to the Libor interest rate-rigging scandal. This resulted in criminal charges against traders, the resignation of Barclays’ chief executive and $6 billion in settlements paid by banks.
“This is as serious as Libor if not more so because this goes to the heart of integrity of markets, and we have to establish the integrity of markets,” Carney told legislators.
The Bank suspended an employee last week as part of its internal investigation into whether staff turned a blind eye to signs of manipulation in the $5.3 trillion-a-day global market, for which London is the main hub.
London Reuters 11 March
#AceFinanceNews – Moscow – Operator of the South Stream offshore pipeline construction, the South Stream Transport BV company, will sign construction contracts covering offshore pipe laying of Line 1 and supplying pipes for Line 2 before the end of the current month, Gazprom CEO Alexei Miller said on Tuesday, summing up results of the company’s Supervisory Board meeting, which approved signing the above-mentioned documents.
Among other things, the contracts also envisage activities aimed at the development of landfall facilities and construction of offshore crossings necessary for all four lines of the offshore gas pipeline both in Russia and Bulgaria.
#AceFinanceNews (Reuters) – Euan Sutherland, the man tasked with rescuing Britain’s 170-year old Co-operative Group, quit on Tuesday and warned it was impossible to reform the mutually owned company unless its directors adopted a more commercial approach.
The Co-op, which runs a bank, supermarkets, and funeral homes, suffered what Sutherland called the worst year in its history in 2013 when it discovered a 1.5 billion pound ($2.5 billion) capital hole in its banking business.
Problems at the group, which is owned by its 7.2 million members and extols an ethical approach to business, were compounded by a drugs scandal involving the bank’s ex-chairman, Methodist minister Paul Flowers who had little financial experience.
Sutherland wanted to reform the group’s unwieldy governance structure to bring a higher level of corporate experience to the group. It has a tangle of boards populated by members elected from regional units of the organisation.
But after 10 months in the job, he tendered his resignation on Monday in a letter saying the Manchester-based group was “ungovernable,” a source said earlier.
#AceFinanceNews (Reuters) – Bank of England Governor Mark Carney signalled he was not concerned that Britain’s economy was close to overheating, despite a strong recovery since last year, putting himself in the dovish camp among policy-makers.
Speaking to lawmakers on Tuesday, Carney said the amount of spare capacity in the economy was probably slightly more than 1.5 percent of gross domestic product, suggesting the BoE can hold off on raising interest rates for longer.
Carney also said Britain’s natural rate of unemployment could be less than the Bank has estimated, meaning the labour market can strengthen further without pushing up inflation.