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Barclays turns to Middle East for cash boost

Barclays is raising up to £7.3 billion of additional capital – including £5.8 billion from investors in Qatar and Abu Dhabi – in a move that will allow the UK bank to boost its balance sheet without turning to the British state for cash

Accounting changes aid Deutsche Bank profits

Deutsche Bank has recorded a profit instead of a loss in its most recent results by using new accounting provisions designed to mitigate the impact of the financial crisis on European banks

Lloyds TSB executives to dominate after HBOS merger

Peter Cummings, banker to retail entrepreneurs such as Sir Philip Green, has been frozen out of the new management team unveiled by Lloyds TSB as it takes over HBOS. The Financial Times reports that just two out of the top 11 jobs in the new bank will go to HBOS executives, with Lloyds TSB executives taking most of the top roles in a team headed by Eric Daniels, chief executive of Lloyds, and Sir Victor Blank, the bank’s chairman

Employers predict redundancy rise

Employers predict a sharp rise in redundancies brought on by the current financial crisis, and a survey by the Chartered Institute of Personnel and Development says older workers will bear the brunt of job losses

Darling set to relax fiscal rules

Alistair Darling has signalled a new approach to fiscal policy, saying his "core objective" must be to help the UK through a likely recession

Bank of England dove urges deep rate cuts

The current financial crisis may be more far-reaching than even the 1929 crash, warns Professor David Blanchflower from the BoE's Monetary Policy Committee (MPC), who has often been a lone voice in urging rate cuts. Now he has said big interest rate cuts are needed to avoid a deep recession.

Energy challenge may fuel problems for businesses during recession

As the effects of the recession continue to bite, Scottish businesses could find themselves in more hot water if they don’t respond to the ongoing energy challenge, according to the first PricewaterhouseCoopers Business Review, supported by the University of Strathclyde’s Fraser of Allander Institute

Companies slow to react to recession

European companies are struggling to respond quickly to predictions of an impending recession, according to a study by strategy consultants Roland Berger

Tweedie to discuss fair value at Westminster

The chairman of the IASB, Sir David Tweedie, has been called before the Treasury Committee to answer questions on fair value accounting on 11 November

Japan to ease rules on fair value

Japan will ease controversial accounting rules that are forcing banks to write down the value of illiquid securities, the country's finance minister said yesterday

US consumer confidence hits record low

US consumer confidence plummeted to its lowest level on record this month, as the deepening of the financial crisis made Americans suddenly much more pessimistic about their current situation and prospects

Bosses 'should embrace Facebook'

Companies should not dismiss staff who use social networking sites such as Facebook and Bebo at work as merely time-wasters, according to a study by the Demos think tank

Brown warns of unemployment rise

Gordon Brown warned of increasing unemployment on Monday as he defended plans to raise government borrowing to mitigate the impact of the looming recession

Further instability possible, Bank says

Britain’s financial system faces the possibility of further instability, with the health of insurers and hedge funds among the current areas of concern, the Bank of England warned on Tuesday

Salmond to meet Lloyds TSB bosses

The Scottish first minister is expected to present a ‘strong case’ for maintaining jobs in Scotland when he meets Lloyds TSB bosses to discuss its proposed merger with HBOS

Non-financial reporting gains currency but still has way to go: KPMG

Eighty per cent of the Global Fortune 250 now release corporate responsibility data in stand alone reports or integrated into annual financial reports, up from 50 per cent three years ago, according to a new report from KPMG

Brown defends Lloyds deal for HBOS

Gordon Brown on Sunday insisted that the proposed merger of Lloyds TSB and HBOS was the right step to “save the banks” since no other bidders had come forward with better offers

Bank delays hit Lehman unwinding

The unwinding of Lehman Brothers’ European operations by a team from PwC has not gone as fast as its administrators had hoped because of slow co-operation from other banks, the man in charge of the process has admitted

Wave of profit warnings expected

European companies are set to issue a wave of profit warnings in the coming months as earnings are expected to fall by about 40 per cent by the end of 2009. The Financial Times reports that executives at companies in continental Europe and the UK are increasingly gloomy about the prospects for 2009 and many expect a prolonged recession before a slow recovery starting in 2010

UK pension pot 'slashed in value'

Millions of pounds have been wiped off the value of the UK's pension pot in the last year as shares have fallen, a pension consulting company says

ICAS Chief Executive urges CAs to play a leading role in rebuilding business confidence

As the global economy continues to slow down, businesses should guard against a siege mentality and be reminded that treating customers and suppliers fairly are crucial to re-establishing a stable business environment

FRC chief executive cites preliminary lessons from financial crisis

Weaknesses in the governance, accounting and auditing of UK companies arising from the current financial difficulties have so far raised questions mainly about the use of standards rather than the standards themselves, according to Paul Boyle, chief executive of the Financial Reporting Council

Goldman to cut 10% of workforce

Goldman Sachs, a hold-out against the trend towards big job cuts in the financial sector, is planning to cut 10 per cent of its workforce in response to the worsening economic environment in the US and abroad

‘I made a mistake,’ admits Greenspan

Alan Greenspan, the former Federal Reserve chairman, said on Thursday the credit crisis had exceeded anything he had imagined and admitted he was wrong to think that banks would protect themselves from financial market chaos

Business failures inevitable, say banks

Banks warned on Thursday it was “inevitable” that businesses would fail in the coming recession, as the government failed to extract any concrete pledges from lenders to improve their treatment of small companies

Pound drops as Brown warns on recession

Sterling slumped to its lowest level against the dollar in five years on Wednesday as financial markets came to terms with the prospect of a deep recession and Gordon Brown conceded that the economy was about to contract

Scots economy grows by only 0.1 per cent in quarter

The Scottish economy barely grew during the second quarter as the key financial services industry contracted by 1.0 per cent, official data showed yesterday

British business confidence at all-time low: KPMG

Confidence amongst British businesses has plummeted to a record low in the wake of the escalating global economic crisis, according to KPMG’s quarterly National Business Confidence Survey

FSA to keep short selling ban in place

The short selling ban in the UK will stay in place until January, the country's financial services watchdog said yesterday, in a move that signalled it was still wary about the markets' health after the convulsions of the past month

HMRC assures ICAS members over online filing

The HMRC official in charge of implementing electronic filing of tax returns has reassured members they will not be penalised if they cannot file online after 31 October due to either software problems or a glitch in the online service.

UK ‘entering recession’, says Bank governor

Mervyn King on Tuesday night gave his gloomiest assessment of Britain’s economic prospects since becoming Bank of England governor in 2003, saying that the country was now “entering a recession”. He compared the recent capital flight from British banks with a “mild form” of a 1990s-style emerging market crisis, warning about the risk of another sharp decline in sterling and an even deeper recession

IMF warns business as EU outlook worsens

European businesses will suffer a sharp contraction in credit next year as the full consequences of the global crisis unfold for non-financial companies, the International Monetary Fund predicted on Tuesday

UK plans £3bn loan for Iceland

The UK and Iceland are hoping to agree a loan of up to £3 billion this week to cover British depositors in Icesave, the online banking unit of Landsbanki, the collapsed Icelandic bank

Brown set to borrow more

Gordon Brown on Monday insisted the government would spend its way through the downturn, in spite of a slump in tax receipts and warnings that the Treasury’s fiscal rules will be smashed by record levels of borrowing

Changes threaten confidence in accounts

Hasty revisions to controversial accounting rules on how to value assets threaten to undermine investor confidence in company accounts, a group of senior investors and analysts has warned. Members of the Corporate Reporting Users Forum, a pan-European group of investors and analysts, urge the European Commission not to make more amendments to accounting rules

Call for corporate tax clampdown

HM Revenue and Customs should more ‘robustly’ pursue companies that avoid paying tax on their profits, a committee of MPs has urged. The Commons public accounts select committee found that more than 25 per cent of Britain's 700 largest businesses paid no corporation tax to HMRC in 2005-6

£2.9 billion raised on AIM by East and South-East Asia companies, says BDO Stoy Hayward

147 companies in East and South-East Asia that have tapped into the region’s rapid growth have raised a total of £2.9 billion of IPO funds on AIM to date, according to a report by Growth Company Investor and accountants and business advisors, BDO Stoy Hayward

OECD Group demands rapid UK action to enact adequate anti-bribery laws

The OECD's Working Group on Bribery has sharply criticised the United Kingdom’s failure to bring its anti-bribery laws into line with its international obligations under the OECD Anti-Bribery Convention and urged the rapid introduction of new legislation

ING takes €10bn injection from Dutch state

ING, the Dutch banking and insurance group, on Sunday accepted a €10 billion capital injection from the Dutch government to shore up its core capital following a slump in its share price and the revelation that it would make its first quarterly loss

Out of the financial frying pan, into the fires of recession

The Ernst & Young ITEM Club Autumn forecast sees an economy that has deteriorated dramatically in the last quarter and is now in recession.

UK companies in distress double

The number of distressed British businesses has more than doubled since the start of the year in a sign of the effect of the global financial crisis on the “real economy”, a corporate restructuring company will reveal today

Tougher climate target unveiled

The UK government has set new and tougher targets on greenhouse gases, and aims to cut carbon emissions by 80 per cent by the year 2050

ICAS warning after Scotland sees personal bankruptcies go up by 70 per cent

As government statistics reveal a sharp rise in insolvencies in Scotland, ICAS is warning that allowing the bankruptcy regime to be seen as “soft touch” would be disastrous

ASB follows international line on fair value

The Accounting Standards Board has followed US and international standard setters by relaxing the rules on marking financial instruments to market values

Threats to information security ‘still poorly understood’ by many UK businesses

Lapses in information security among UK businesses are poorly recorded and understood, reflecting a lack of understanding of the threat level that organisations face, according to a study published by PricewaterhouseCoopers

Unemployment looks set to reach 2m by Christmas

The number of people out of work in the UK shot up to 1.79m according to figures released yesterday, as the state of the economy sparked still further concern

AADB investigating BDO’s audit of XL Leisure Group

The UK accounting profession’s independent regulator is set to investigate BDO Stoy Hayward over its role as auditor of failed holiday group XL Leisure

Regulator promises flexible approach to insurers’ capital requirements

The Financial Services Authority has privately told insurers that it is prepared to be flexible if companies, particularly life assurers, experience difficulties in meeting some of their capital demands given the turmoil in equity and bond markets, according to the Financial Times

US government to take stakes in banks as part of rescue package

Just days after announcing a bail-out plan for the financial system based on purchasing troubled assets, the US government has followed the British and European lead by unveiling a plan to buy equity stakes in US banks

UK bail-out banks call for dividend ban to be lifted

Britain’s largest banks are pressing the government to rethink the terms of its £37 billion bail-out of the industry as investors take fright at the requirement for the banks to stop paying dividends to shareholders, the Financial Times reports.

FRC publishes revised Guidance on Audit Committees

The Financial Reporting Council has advised audit committees that they need to consider the potential effect of an auditor "withdrawing from the market"

Credit crunch is not biggest barrier to growth says small business lobby

Regulation, tax and spiralling fuel prices are the most significant barriers to developing a business, according to a survey carried out by lobby group the Forum of Private Business (FPB)

World stock markets rise after governments roll out bank rescue packages

Financial markets have reacted positively to the massive programme of economic measures unveiled by governments around the world

ICAS urges political leaders to stand by fair value accounting

Recent calls to suspend fair value accounting would deprive investors of the most relevant information on which to take financial decisions, according to the Institute of Chartered Accountants of Scotland

CFOs are digging in for the downturn, Deloitte survey finds

Chief financial officers’ optimism about the financial outlook for their companies has deteriorated markedly, and at the fastest rate since the credit crisis began, according to the latest CFO Survey published by Deloitte

Software developers pledge action on the environment

Accounting software houses are among the IT businesses backing a major initiative on “green IT” from the Business Application Software Developers Association (BASDA), the voice of the UK software industry

RBS, Lloyds TSB and HBOS in government bail-out

Details of a plan to pump £37bn of public money into three of the UK’s leading banks - The Royal Bank of Scotland, Lloyds TSB and HBOS – were unveiled this morning

European banks rescue plan agreed

No major bank in Europe will be allowed to fail, leaders of the European Union pledged this weekend after a summit meeting in Paris

Rise in profit warnings as companies feel the credit squeeze

UK companies issued 111 profit warnings in the third quarter of this year, according to research published today by Ernst & Young

Freelance workers protest over moves to tax travel expenses

The Professional Contractors Group (PCG), which represents the UK’s freelancers, has warned the government against “heavy-handed action” which would remove tax relief on expenses

Wall Street in biggest fall since 1987 crash

The US stock market suffered its largest loss since the crash of 1987 on Thursday amid panic over General Motors, Morgan Stanley and several big insurance companies

UK and Iceland clash on crisis

Britain was locked in an increasingly acrimonious dispute with Iceland on Thursday night after the nationalisation of the Nordic country’s largest banks put close to £800m of local authority money at risk and prompted Gordon Brown to threaten to seize the assets of Icelandic companies

Brown plans tough measures to put squeeze on ‘fat cat’ bonuses

Prime Minister says reckless City bankers will be "punished" and their days of big bonuses are over.

No need for pension panic

James Purnell, the Secretary of State for Work and Pensions, says that although there are financial challenges being faced by every man and woman around the country right now, we should not get distracted from the long-term picture when it comes to pensions

UK banks thrown £400 billion lifeline

Britain’s largest banks were preparing on Wednesday to boost their capital reserves after the Government launched a dramatic £400 billion rescue plan to restore confidence among financial institutions and avert a severe economic slowdown

Anti-terror law invoked to retrieve Icelandic deposits

Anti-terrorism powers were used on Wednesday to recoup money owed to UK depositors in a failed Icelandic bank in a move that risked sending Britain’s relations with Reykjavik to their lowest since the 1970s “cod wars”

'Major global downturn' says IMF

The world economy is entering a major downturn in the biggest financial crisis since the 1930s, said the International Monetary Fund (IMF)

UK pension regulation ‘costly and inflexible’ says NAPF

The regime for UK defined benefit (“final salary”) pension schemes is less flexible and more costly than in other countries, according to a report commissioned by the National Association of Pension Funds

Central banks cut interest rates

Asian central banks on Thursday joined their western counterparts in coordinated cuts to interest rates in an effort to curb the risk of the credit crisis sparking a severe global recession

Darling unveils bank rescue

Britain’s largest banks are to be part-nationalised after Gordon Brown took the momentous decision to pump tens of billions of pounds of public money into the sector to avert a banking collapse

RBS tumbles on talk of state intervention

London’s banking stocks hit their lowest level in a decade on Tuesday as hints about state intervention triggered an exodus from the sector

Defined benefit pension closures expected

A further wave of closures of defined benefit pension schemes looks in the offing just as employees are regaining faith in pensions as a way of saving, according to the latest survey from the National Association of Pension Funds

Drop in demand for staff sharpest in 11 years

Demand for staff has fallen at its sharpest rate in 11 years in the past month, according to a closely watched employment survey, which suggests the pace of credit crunch-related job losses is speeding up

Markets routed in global sell-off

Stock prices collapsed around the world on Monday amid growing fears that the credit crisis would trigger a global recession. The wave of selling swept through markets despite a scramble by governments to tackle the crisis, leading to rampant speculation that co-ordinated emergency rate cuts by the Federal Reserve and other central banks might be in the offing

RBS down after counterparty rating cut by S&P

The Royal Bank of Scotland saw the biggest one-day drop in its share price for 20 years on Monday, with the stock tumbling by more than a quarter, as Standard & Poor’s, the rating agency, cut the bank’s long and short-term counterparty credit ratings

Darling weighs boost for banks

Alistair Darling, the chancellor, met leading bankers on Monday night to discuss the possibility of a multi-billion pound taxpayer-funded capital injection into the sector, in an attempt to rebuild the battered balance sheets of Britain’s banks

UK economy 'already in recession'

Britain is already in a recession, which is worsening and could see unemployment rise by 350,000 by next year. A quarterly survey of 5,000 businesses by the British Chambers of Commerce (BCC) says confidence has collapsed in both manufacturing and service sectors

Darling plans ‘big steps’ to aid UK banks

Alistair Darling was on Sunday considering a dramatic taxpayer-funded recapitalisation of Britain’s banks, amid signs of cross-party and central bank support for an effective part-nationalisation of the sector

Germany guarantees savings to avert panic

Germany said on Sunday it would guarantee all private German bank accounts – currently worth €568 billion – in a dramatic move to prevent panic withdrawals as fears over the worldwide financial crisis spread to Europe’s largest economy

Business urged to improve cash reporting

Companies must step up reporting of their cash positions or risk losing investor confidence, according to a group of leading analysts. They warn that the disclosures are crucial as solvency issues come to the fore during the financial crisis

'No hiding place' as deal activity collapses

Deal activity in Scotland has fallen dramatically over the past two years, contracting by half in each of the past two years, new research reveals. KPMG has found that the number of deals completed in the first half of this year was down 51 per cent on the same period last year. The previous year showed a fall of 44 per cent

IASB endorses “clarification” on fair value from SEC and FASB

The International Accounting Standards Board has backed a joint statement from the US financial regulators and standard setters that appears to backtrack on fair value reporting for financial instruments.

Brown unhappy over guarantee for Irish bank depositors

The government of Ireland’s 100 per cent guarantee for bank depositors has been criticised as anti-competitive by politicians in the UK and France.

Chartered accountant set to take top job at Law Society of Scotland

ICAS member Lorna Jack has been named as the Law Society of Scotland’s next Chief Executive. She takes up her post in January 2009.

New savings account offer set to benefit CAs’ benevolent association

Dunfermline Building Society has worked together with ICAS to provide an exclusive savings product to the Institute’s members. The account will help to contribute to the Scottish Chartered Accountants Benevolent Association.

US Senate approves banking rescue plan

Legislators in America’s Upper House have voted overwhelmingly in favour of a $700 billion (£380 billion) scheme to salvage the country’s stricken financial system with an injection of public money.

Review Panel warns directors to take account of the credit crunch in company reports

The Financial Reporting Review Panel says the current economic conditions create extra challenges in financial reporting, and it has warned directors to ensure that changing market conditions are reflected in their company accounts.

Scottish AIM market hit by poor trading conditions

companies listed on the Alternative Investment Market (AIM) fell by 25.5 per cent in the third quarter of 2008, but they still outperformed the average for AIM companies UK-wide.

Move to international standards hits companies’ balance sheets, ICAS study finds

A major research report published today by ICAS suggests that the transition to International Financial Reporting Standards (IFRS)has had a significant impact on the profits and net equity of companies.

UK under pressure to follow Ireland’s lead on protection for savers

The British government is expected to extend the threshold of protection for bank depositors after it was announced that savers in Ireland’s six leading banks would receive an unlimited guarantee.

US senators to vote on bank rescue plan today

The US Senate will vote on Wednesday on a revised version of a $700 billion (£380 billion) financial rescue package which was rejected on Monday by the House of Representatives.

The UK faces a slow-down in the growth of available labour within the next decade

A new report from KPMG shows that the UK and other developed countries such as the US, Western Europe and Australia face a slow-down in the supply of both skilled and unskilled labour in the next few years if there is not a significant increase in immigration.

Small business “unready” for National Minimum Wage increase

The National Minimum Wage for the UK goes up with effect from today to £5.73, but many small businesses have done little or nothing to prepare for the hike, a survey from Bibby Financial Services has found.

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