Category Archives: Business

Silicon Valley Bank chief pressed Congress to weaken risk regulations

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CEO Greg Becker personally led the bank’s half-million-dollar push to reduce scrutiny of his institution – and lawmakers obliged

This story was first published in the Lever

Eight years before the second-largest bank failure in American history occurred this week, the bank’s president personally pressed Congress to reduce scrutiny of his financial institution, citing the “low risk profile of our activities and business model”, according to federal records reviewed by the Lever.

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UK rail strikes: what would a deal mean for passengers, unions and operators?

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We look at who might be the winners in the industry’s biggest industrial dispute in decades

After 23 days of national strikes, two years of talking and hundreds of thousands of cancelled trains, rail workers are contemplating a pay rise that barely catches the coat tails of inflation. The rail industry’s biggest industrial dispute in decades may be approaching its final chapter – but with little chance of a happy ending for anyone involved.

The pain for passengers is not yet over – four more 24-hour strikes across 14 operators by train and station staff in the biggest rail union, the RMT, start next Thursday, 16 March.

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Silicon Valley Bank fails in largest bank collapse since 2008 crisis

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US regulators seize SVB’s assets after a run on the bank, as global institutions monitor situation closely

US regulators rushed to seize the assets of top tech lender Silicon Valley Bank on Friday after a run on the bank, marking the largest failure of such an institution since the height of the financial crisis more than a decade ago.

Silicon Valley Bank (SVB), the nation’s 16th largest bank, failed after depositors – mostly technology workers and venture capital-backed companies – hurried to withdraw their money this week as anxiety over the bank’s situation spread.

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Queensland mother whose son took his life calls for change at robodebt royal commission – As it happened

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Inquiry into the unlawful scheme, which ran from 2015 to 2019, is ongoing. This blog is now closed

Final robodebt hearing shines light on people affected

A Centrelink employee and a customer impacted by the illegal robodebt scheme will be the final two witnesses appearing at the royal commission’s public hearings, AAP reports.

The international standard now in the OECD area is beyond 52 weeks. It’s great we’re moving to 26 but we are not going fast enough, doing what other countries are doing. We have slipped down the international rankings on paid parental leave.

It’s very important that we give the support to parents when a new baby arrives so they can share the leave, they can begin life with a new child, give that child the best shot and alongside that, of course, we need quality, early childhood education and care which we in the Greens think should be free, just like primary school.

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Deloitte CEO in thinly veiled criticism of EY after rival’s split plans thrown into chaos

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Joe Ucuzoglu posts 20-minute video to Deloitte’s public website

Deloitte’s chief executive has launched a thinly veiled criticism of rival EY after its controversial plans to split the business into two were thrown into turmoil.

EY initially announced plans for a radical breakup of its global operations last year, that would separate its audit and advisory businesses.

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Ex-Goldman banker given 10 years in prison for role in 1MDB fraud scandal

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Roger Ng, 50, found guilty by Brooklyn jury in massive embezzlement linked to Malaysian state investment fund

Roger Ng, the former Goldman Sachs banker at the center of the multibillion 1MDB embezzlement scandal, was sentenced to 10 years in prison on Thursday, placing a capstone on one of the largest and most bizarre financial frauds of the past decade.

A jury in Brooklyn, New York, found Ng, 50, from Malaysia, guilty of violating US anti-bribery laws, money laundering and illegally skirting Goldman’s accounting controls, after a seven-week trial.

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North Sea’s biggest energy producer claims UK windfall tax ‘wiped out’ surge in profit

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Harbour Energy says it had to cut jobs and investment at same time as announcing new shareholder payouts taking total to $1bn

The North Sea’s biggest producer has complained that the windfall tax on oil and gas companies “all but wiped out” its profits last year, at the same time announcing new shareholder payouts which take the total to $1bn since the end of 2021.

Harbour Energy said on Thursday its pre-tax profits rose by nearly 700% in 2022 to $2.5bn (£2.1bn) on higher production and bigger margins making it the latest oil and gas company to report a huge increase in underlying profits, after the war in Ukraine pushed up wholesale gas prices and sent household bills soaring.

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Crypto bank Silvergate announces liquidation amid sector turmoil

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Wind-down and liquidation plan follows mass withdrawal of deposits after collapse of FTX exchange

The cryptocurrency-focused US lender Silvergate is to wind down its operations after it was hit by customer withdrawals following the collapse of crypto exchange FTX.

The California-based bank had warned last week it was “less than well capitalised” after depositors demanding their money back, adding that it was evaluating its ability to operate as a going concern.

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March of the unicorns: Israel’s tech sector rebels against Netanyahu ‘power grab’

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Proposals to neuter the country’s judiciary have spooked entrepreneurs who had seemed immune to the political weather

About 20 years ago, the skyline of Tel Aviv began to change. The city’s collection of elegant white Bauhaus buildings has been joined by tower after tower, each one a salute to Israel’s rapid transformation into one of the world’s most important advanced technology centres.

It is no accident that the rise of the “startup nation” has dovetailed with the career of its longest serving prime minister, Benjamin Netanyahu. Bibi, as he is widely known, is a firm believer in the free market and has championed Israel’s vaunted hi-tech sector as his own personal achievement. At 15.3% of GDP, it is now Israel’s main engine of economic growth, employing 10% of the country’s salaried workforce, and generating about a quarter of income taxes.

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UK house prices could be stabilising despite falls, say surveyors

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Rics data for February shows improvement in new buyer inquiries and sales

The UK housing market remains in decline but there are some signs of stabilisation, with an improvement in new buyer inquiries and sales last month, according to surveyors.

Many told the Royal Institution of Chartered Surveyors (Rics) that a return of optimism, and lower than expected interest rates, had given the housing market some hope for the coming months after a sluggish start to the year.

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Heathrow told to cut passenger charges in move that could lower fares

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Decision by Civil Aviation Authority comes despite airport having argued for higher fees

Heathrow airport has been ordered to cut average passenger charges by about 20% next year, in a move that could translate to lower ticket prices for travellers.

The decision by the UK regulator the Civil Aviation Authority (CAA) comes despite Heathrow having argued for higher fees, which are charged to airlines and are used to fund baggage handling, security and other costs across the airport’s terminals.

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Sydney trains delayed due to ‘communication issue’ – as it happened

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This blog is now closed.

Facing up to financial distress

It is not just academic though – there have been increased reports of people feeling distressed because of financial pressures.

When people are under extreme financial pressure, that has implications for their wellbeing more broadly. I mean, I think that is understood. And I’m sure that the governor in accepting that meeting understands that.

What we want to do as government is make life a little bit easier for people where we can, whether it’s with energy bills, whether it’s with cheaper early childhood education, cheaper medicines, trying to get wages moving again, financial security is a big part of what we’re focused on, particularly when these cost-of-living pressures are so acute.

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Officials believe pro-Ukraine group may have sabotaged Nord Stream – reports

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Kremlin dismisses tentative intelligence from European and US agencies as a bid by the perpetrators to divert attention

European and US intelligence officials have obtained tentative intelligence to suggest a pro-Ukrainian saboteur group may have been behind the bombing of the Nord Stream gas pipelines last year, according to reports in the New York Times and German newspaper Die Zeit.

German investigators believe the attack on the pipelines was carried out by a team of six people, using a yacht that had been hired by a company registered in Poland and owned by two Ukrainian citizens, according to Die Zeit.

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Starbucks CEO to testify before Senate over opposition to stores unionizing

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Bernie Sanders had threatened to subpoena Howard Schultz if he refused to appear while workers file unfair labor practice charges

The Starbucks CEO, Howard Schultz, has agreed to testify before a Senate committee investigating the company’s intense opposition to national efforts to unionize its stores.

Senator Bernie Sanders had threatened to subpoena Schultz if he refused to appear before the US Senate health, education, labor and pensions (Help) committee. Sanders said Schultz had “refused to answer any of the serious questions we have asked” for over a year.

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China to set up new financial watchdog as part of reforms

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New body will replace banking and insurance regulators after concerns over creaking property market

China will set up a new financial watchdog to replace its banking and insurance regulators as part of an overhaul of state institutions after concern about exposure to its creaking property market.

The new body, which does not have an official name yet, would bring oversight of China’s financial system under direct control of the State Council, the top government body. There are also reports that the president, Xi Jinping, who will in all likelihood be granted a third presidential term on Friday, will revive the Central Financial Work Commission, an organisation that would supervise the financial system on behalf of the Chinese Communist party, although this has yet to be announced publicly.

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Greggs to open 150 new stores despite rising staff and energy costs

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Britain’s biggest bakery chain says it expects cost inflation of between 9% and 10% this year

Greggs has said higher wage and energy bills are weighing on its profits but it plans to push ahead with opening 150 new stores this year as well as trialling a 24-hour drive-through outlet.

Britain’s biggest bakery chain, known for its sausage rolls and steak bakes, said costs had risen by 9% last year and would continue to be a challenge in the year ahead.

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Spain approves draft law for gender quotas in business and politics

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Legislation aims to increase number of women in decision-making roles such as in company boardrooms

Spain’s government has approved a draft law that aims to bolster the presence of women in decision-making spheres by setting out quotas for women in politics, business and professional associations.

“This is useful policy that changes people’s lives,” the country’s finance minister, Nadia Calviño, said on Tuesday. “It’s clear that we’ve come a long way … but there is still a lot to do.”

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Philip Lowe leaves clues his rate-rising work may be done – bar an Easter finale | Peter Hannam

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The RBA governor has ditched his hawkish tone and the odds now seem to favour just one more rise, probably in April – but that could change

There are, as Reserve Bank governor Philip Lowe reminded us as he announced a record 10th consecutive interest rate rise, “a range of potential scenarios for the Australian economy”.

One scenario, it seems, involves interest rates not rising much further. In fact, the RBA’s pre-Easter gathering on 4 April may mark the final rate hike in this cycle.

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Women earn $1m less than men over lifetime and retire with $136,000 less super, study finds

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Research adds to growing calls to pay more parental leave and for superannuation on paid parental leave

Women in Australia earn $1m less on average over their lifetimes than men and retire with $136,000 less in superannuation, according to research released on International Women’s Day.

The research by the Australia Institute’s Centre for Future Work, released on Wednesday, suggests that the biggest driver of the gap in retirement savings is still the gender pay gap.

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UK shoppers slash spending as price rises and energy bills bite

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February figures from BRC highlight impact of cost of living crisis on British economy before budget

UK consumers sharply cut back their spending in February as soaring living costs damaged household finances, retailers have warned, despite strong sales of jewellery and fragrances for Valentine’s Day.

Highlighting the impact of the cost of living crisis on the economy before Jeremy Hunt’s budget next week, the British Retail Consortium (BRC) said sky-high energy bills and the rising cost of a weekly shop were forcing shoppers to cut back.

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