G20 pledges tougher bank action

Finance ministers from the world's most powerful economies have agreed a series of measures to try to regulate the global banking system. They want a system that rewards long-term performance rather than short-term risk-taking. However the G20 meeting in London did not agree on specific limits on the amounts individual bankers get paid. Britain, the US and Canada opposed the idea, but the Financial Stability Board is to examine the issue.

It will report back to the summit of G20 leaders in Pittsburgh, Pennsylvania later this month. The G20 countries agreed on measures requiring banks to disclose the pay and bonuses of their highest-paid employees and to allow bonuses to be "clawed back" if decisions which seemed successful later go wrong.
Source: www.bbc.co.uk

Posted by: Skyline College a premium MBA, BBA, Mass Communication and Travel & Tourism institute in Delhi and Gurgaon.

Airline losses 'hit $1bn a month'

Airlines are likely to have lost more than $6bn (£3.7bn) in the first half of 2009, according to the International Air Transport Association (Iata). This figure - an average of $1bn a month - is double the amount Iata said in December that airlines would lose during the whole of 2009. Airlines made losses between April and June, when they would usually make 50% of their annual profits, Iata said.

Meanwhile, budget airline SkyEurope has filed for bankruptcy. The loss-making Slovakian airline, which was set up in 2001, has suspended all flights with immediate effect. And American Airlines has said it is cutting 921 flight attendant jobs as it deals with a downturn in passengers, and lower revenue.
Source: www.bbc.co.uk

Posted by: Skyline College a premium MBA, BBA, Mass Communication and Travel & Tourism institute in Delhi and Gurgaon.

Central banks back new regulation

Central bankers have backed new measures to strengthen supervision of the global banking industry. A meeting of the Bank for International Settlements (BIS), which consists of the world's central banks, pledged to increase bank's capital requirements. The plans should substantially reduce the probability and severity of economic and financial stress, the BIS said. But the BIS did not set out a timeline for implementation of the proposals.

The measures will be outlined in detail by year-end and be introduced in a way that does not impede the recovery of the real economy. The BIS meeting comes just after the finance ministers from the Group of 20 richest nations meeting in London backed a system that rewards long-term performance rather than short-term risk-taking.
Source: www.bbc.co.uk

Posted by Skyline College

Downturn in US economy 'ending'

US Federal Reserve policymakers are increasingly confident the downturn in the US economy is ending, minutes from their latest meeting show. The assessment by recently re-appointed Fed Chairman Ben Bernanke and his colleagues struck a more upbeat tone than the last assessment in late June. But there was uncertainty about how quickly the economy would grow in 2010.

Unemployment, which is set to move above 10% this year, may impact on consumer behaviour, they warned. However the Fed said that consumer spending appeared to be levelling out and that the housing market was becoming more solid, while manufacturing was stabilising. The prospects for US exporters will also brighten, as the economies of other countries improved, the policymakers added.
Source: www.bbc.co.uk

(Post by Skyline College www.skylinecollege.com)