City regulators clears HBOS ex-bosses of misconduct over bank’s near-collapse

Watchdogs say six-year investigation had determined no grounds for action against unnamed individuals

City regulators have cleared former bosses of HBOS of misconduct in the lead-up to its near-collapse in 2008, despite previously having blamed the bank’s board for its failure.

The Bank of England and Financial Conduct Authority (FCA) said on Friday that they had concluded “rigorous and forensic investigations” into unnamed former managers, after gathering more than 2m documents, interviewing former bank managers, and undertaking “substantial analysis” of the bosses’ roles and responsibilities at what was then the country’s biggest mortgage lender and savings institution.

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KPMG partner banned from accounting after misleading regulator over Carillion

Peter Meehan, who led audit of failed outsourcer, will also have to pay fine of £250,000

The KPMG partner who led the audit of failed outsourcer Carillion has been banned from the accounting profession for a decade for providing false and misleading information to regulators.

Peter Meehan will also have to pay a fine of £250,000 after a Financial Reporting Council (FRC) tribunal found that he and other KPMG managers had misled the regulator using forged documents.

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FCA investigates Wise co-founder after tax default

Kristo Käärmann was included on HMRC’s list of deliberate tax defaulters in September 2021

The UK’s financial regulator is investigating the co-founder of payments company Wise after he failed to pay his taxes.

Kristo Käärmann was included on HM Revenue and Customs’ list of deliberate tax defaulters in September 2021, after failing to comply with his tax obligations. He failed to pay £720,495 for the 2017-18 tax year and received a fine of £366,000, the tax authority said.

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City donations worth £15m raise concerns over influence on UK politics

Total donated to parties by financial firms and individuals tied to the sector over two years, report says

Concerns have been raised over the City’s influence on Westminster, after a report found financial firms and individuals tied to the sector donated £15m to political parties and gave £2m to MPs during the pandemic.

The campaign group Positive Money tallied the gifts, expenses and donations handed to MPs, peers and their parties, as well as the value of income from politicians’ second jobs, saying it contributed to finance’s “oversized influence” on policymaking.

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Neil Woodford investors sue administrators of collapsed fund

Law firm brings group litigation aiming to recoup at least £18m on behalf of 1,500 people

Investors who lost millions in the collapse of a fund run by the former star stockpicker Neil Woodford have brought group litigation against the administrator in hopes of recouping at least £18m.

The law firm Harcus Parker lodged its first batch of claims on behalf of 1,500 savers at the high court in London on Friday morning. Woodford himself is not the target – the claim is against the administrator of his fund, Link Fund Solutions, which is accused of failing in its duty to protect investors. Lawyers expect to expand the suit to represent at least 7,000 claimants.

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Unilever shares rise as billionaire investor Nelson Peltz joins board

Hedge fund boss – whose daughter married Brooklyn Beckham – holds 1.5% stake in Unilever

Unilever’s share price has risen after the consumer goods company announced that the billionaire activist investor Nelson Peltz is to become a board member.

Peltz, the US founder and chief executive of Trian Fund Management, has been building his Unilever stake since January amid growing speculation that he will push the Dove soap and Marmite manufacturer to shake up its sprawling operations, with the company under increasing pressure to sell off brands or consider a break-up.

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Pay gap in UK between bosses and workers likely to widen in 2022

After narrowing during pandemic, analysis suggests FTSE 350 CEOs will collect 63 times average median pay at their companies

The gap between the pay of bosses and employees will widen again this year after narrowing during the pandemic, research suggests.

FTSE 350 chief executives are expected to collect 63 times the average median pay of workers at their companies , according to the High Pay Centre thinktank, which campaigns for fairer pay structures.

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Cutting City regulation risks another financial crash, say economists

Leading economists publish letter to Rishi Sunak in response to proposed financial services and markets bill

A group of 58 leading economists and politicians, including the former business minister Vince Cable, has written to the chancellor to say that scaling back City regulation will put the UK at risk of another financial crash.

The open letter, which has also been signed by the former Greek finance minister Yanis Varoufakis and Columbia University professor Adam Tooze, was sent in reaction to the Queen’s speech, which outlined Rishi Sunak’s plans to “cut red tape” through a financial services and markets bill.

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Women-led UK firms struggle to attract equal investment, study finds

The Gender Index aims to support growth of female-led companies, which tend to have lower turnovers

Companies led by women disproportionately attract less investment than those led by men, according to a large-scale study of female entrepreneurship in the UK.

The Gender Index, which was launched on Thursday, is a research study of all 4.4m active UK companies and allows users to track the impact of female-led firms on the economy via an online, interactive tool.

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NatWest returns to majority private control as it buys back £1.2bn in shares

UK government sells more of stake in group formerly known as Royal Bank of Scotland at a loss over 2008 price

NatWest Group has returned to majority private ownership after it agreed to buy back £1.2bn of shares from the UK government, more than 13 years after the company was bailed out by taxpayers at the height of the financial crisis.

The company, formerly known as Royal Bank of Scotland Group (RBS), said it had agreed to make an off-market purchase of 550m shares, or 4.91% of its share capital, from HM Treasury at Friday’s closing price of 220.5p, in a statement to the stock market on Monday.

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‘Blockchain Rock’: Gibraltar moves to become world’s first cryptocurrency hub

Territory’s financial sector risks reputational damage and diplomatic sanctions if complex regulations of crypto hub fail

On the southern Mediterranean coast, nestled in the shadow of the Rock’s sheer limestone cliffs and its tangle of wild olive trees, the Gibraltar Stock Exchange (GSX) is quietly preparing for a corporate takeover that could have global consequences for the former naval garrison.

Less than half a mile away, next to the blue waters of Gibraltar’s mid-harbour marina, the peninsula’s regulators are reviewing a proposal that would prompt blockchain firm Valereum to buy the exchange in the new year – meaning the British overseas territory could soon host the world’s first integrated bourse, where conventional bonds can be traded alongside major cryptocurrencies such as bitcoin and dogecoin.

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‘We’ve signed Ronaldo’: could other banks follow Goldman Sachs to Birmingham?

As the bank hires nearly 100 staff in the city, the region’s mayor hopes to attract more big firms

Investment bankers are rarely compared to football stars. But when the West Midlands mayor, Andy Street, formally welcomed Goldman Sachs to Birmingham this month, he likened its arrival to one of the summer’s big transfer moves.

“I hope this isn’t inappropriate,” he said, addressing a crowd of Goldman staff gathered at the city’s newly refurbished Grand Hotel. “I think you probably are the Cristiano Ronaldo moment. You’re the big one to secure.”

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The Guardian view on Europe’s centre-left: new grounds for optimism | Editorial

There are signs that previously struggling social democratic parties are drawing the right lessons from the pandemic

In the wake of the financial crash in 2008, hopes were high on the left that a bona fide crisis of capitalism would significantly shift the political dial in its favour. Isolated victories and movements aside, it didn’t really happen. Instead, in the early 2010s, the bailout of the bankers was followed by the imposition of austerity across Europe and in America as governments sought to balance the books.

Premature predictions on the nature of post-Covid politics in the west are therefore to be avoided. But certain themes do seem to be emerging. Sketching out broadly communitarian territory, they chime with many people’s experience of how the pandemic played out and what it exposed; and there is some evidence that, in northern Europe, they might inform a revival and renewal of centre-left parties and movements.

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European banks storing €20bn a year in tax havens

Barclays and HSBC among banks booking money equivalent to 14% of annual profits in offshore entities

Leading European banks are booking around €20bn (£17bn) a year – equivalent to 14% of their total profits – in tax havens, with Barclays, HSBC and NatWest Group among those enjoying the lowest tax rates, according to a new report.

The figures emerge from an analysis, conducted by the EU Tax Observatory, of 36 big banks required to publicly report country-by-country data on their activities.

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Disinfection robots and thermal body cameras: welcome to the Covid-free office

A workplace in Bucharest filled with anti-virus innovations could become the new normal in office design, its creators hope

Not so long ago it may have seemed more like a futuristic vision of the workplace – or a hospital.

But the hands-free door handles, self-cleaning surfaces, antimicrobial paint, air-monitoring display tools, UV light disinfection robots, and 135 other measures at an office block in Bucharest are here to stay, say the creators behind what they are touting as one of the world’s most virus-resilient workplaces, which they hope will become the new normal in office design.

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Bitcoin records biggest one-day drop for almost two months

Fall comes amid warnings over speculation by novice investors in cryptocurrencies such as dogecoin

Bitcoin has posted its biggest one-day drop in almost two months, amid warnings that novice investors could suffer heavy losses from speculating in crypto assets such as “meme coin” dogecoin.

Bitcoin tumbled more than 11% on Sunday, dropping from about $62,000 (£45,000) to $55,000 – its lowest level since the end of March. Last week, the cryptocurrency had hit fresh record highs at nearly $65,000.

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Credit Suisse executives depart after Archegos and Greensill losses

Directors’ bonuses scrapped as chief risk officer and investment bank chief exit

Credit Suisse has cancelled the bonuses of its directors, slashed its dividend and announced the departure of two senior executives as the bank revealed £3.4bn in losses from the collapse of the Archegos investment fund.

The Swiss bank is reeling from heavy exposure to Archegos and the business bank Greensill, which suffered successive but unrelated financial blow-ups.

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Top banks could be investigated over $20bn fire sale of hedge fund assets

Collapse of Archegos has reportedly prompted SEC and FCA inquiries into Credit Suisse, Goldman Sachs, Nomura and others

UK and US regulators are looking into whether global investment banks breached rules by holding group discussions shortly before launching a fire sale of nearly $20bn worth of assets belonging to the distressed hedge fund Archegos Capital Management, according to reports.

The Securities Exchange Commission is said to have requested further information from major US banks Goldman Sachs, Wells Fargo and Morgan Stanley, as well as Japan’s Nomura and Swiss lender Credit Suisse about a meeting with Archegos founder Bill Hwang on Thursday.

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Goldman Sachs junior banker speaks out over ’18-hour shifts and low pay’

Younger staff in London follow revolt in US offices over remote-working conditions

The reputation of Goldman Sachs as the most desirable employer for aspiring investment bankers is at stake. Legendary for its pulling power with the best graduates, the bank is now facing a rebellion in its lower ranks.

Junior staff who used to tolerate long working hours thanks to office camaraderie have been forced to manage burnout at home, alone, throughout the pandemic. Some have started demanding change, while others are plotting their exit. What began as a little local trouble at a US office in February has now spread to the UK.

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From Tipperary to Silicon Valley: how Stripe became vital cog in digital economy

Brothers Patrick and John Collison’s online payments empire is now valued at $95bn

The latest fundraising round by the digital payments firm Stripe has boosted the net worth of its co-founders, Patrick and John Collison, to about $11.5bn (£8.3bn) each, catapulting them into the top bracket of the world’s millennial billionaires. Not bad for two brothers from the tiny Tipperary village of Dromineer, population: barely 100.

Related: Silicon Valley's Stripe valued at $95bn after fundraising

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