Police warn they may not be able to afford Tesco's £3m riot compensation bill

 

In total, the retailer has asked for nearly £3m in compensation from police forces around the country, following the riots that tore through some high streets in August. It is likely that this is the biggest request from a single retailer. The company is claiming under the Riot Damages Act, a piece of Victorian legislation that allows businesses and individuals affected by riot damage to claim directly from the police, rather than their own insurer. In the immediate aftermath of the civil disturbances, the British Retail Consortium urged small retailers to put in their claims to make sure their businesses were not harmed. However, the Greater Manchester Police Authority, which has been hit with 280 claims totalling £4.4m, has criticised Tesco for using the Act, saying there was no guarantee the police force would be able to afford all of the compensation. The force faces £134m budget cuts in the next five years. It added that J Sainsbury was one of a number of large companies that had chosen not to submit any compensation claims. Tesco has submitted more than 20 claims for compensation to Manchester police, including one for £40-worth of looted stock.

Brussels threatens to sue Britain to let in 'benefit tourists'

 

Ministers fear the move could leave taxpayers handing out as much as £2.5  billion to EU nationals, including out-of-work “benefit tourists”, a new cost that could wreck Coalition plans for welfare reform. The commission’s threat, on the eve of the Conservative Party conference, has raised the political temperature on Europe still further. In an outspoken attack today, Iain Duncan Smith, the Work and Pensions Secretary, says the commission’s move is part of a “wider movement” by the “unelected and unaccountable” European authorities to extend their power over the UK. “This kind of land grab from the EU has the potential to cause mayhem to nation states, and we will fight it,” he writes in The Daily Telegraph. The commission is objecting to Britain’s rules on welfare, claiming they discriminate unfairly against foreigners. To claim benefits in Britain, EU nationals must pass a “right to reside” test. The commission says the test is too tough, and wants Britain to apply more generous EU-wide rules.

Legal warning to UK over benefits for EU nationals

 

The European Commission has threatened legal action against the UK, saying a test of eligibility for benefits discriminates against foreigners. It says it is easier for UK citizens to prove their "right to reside" - a test imposed by the UK for certain benefits - than EU nationals. The commission says it may refer the case to the European Court of Justice. Ministers say it is a "fundamental challenge" to the UK's right to decide its own social security arrangements. The Commission says it has been in talks with the UK for several years over the issue and is responding to a "huge number" of complaints from EU citizens living in the UK. Residence tests On Thursday it announced that it was giving the UK two months to explain how it was going to bring its legislation into line with EU law - prompting UK Work and Pensions Secretary Iain Duncan Smith to accuse it of a "land grab" and to pledge to fight it. A range of entitlements - including child benefit, child tax credit, state pension credit, jobseekers' allowance and employment and support allowance - are given only to those with a "right to reside" in the UK. Continue reading the main story WHAT BENEFITS ARE INVOLVED Child benefit Child tax credit State pension credit Jobseekers' allowance The Commission says there are already an EU-wide "habitual residence" rules which are strict enough and the UK is imposing an additional test, which indirectly discriminates against non-UK EU nationals. While UK nationals can easily prove their "right to reside" based on their UK citizenship, other EU nationals have their applications heard on a case-by-case basis, which it says breaches EU social security co-ordination rules giving all citizens equal rights. The Commission gives the example of a woman who moved to the UK and worked from April 2007 to April 2009 when she was made redundant. It says she had paid taxes and National Insurance but was refused claims for jobseekers' allowance. 'Very sound' It says UK citizens in other EU states do not have to meet similar tests and get non-contributory benefits. Laszlo Andor, Commissioner for Employment and Social Affairs, said the EU's legal position was "very sound". Continue reading the main story “ Start Quote We are talking here.. about people who are inactive, people who are looking to come to the UK who are not going to work here” Chris Grayling Employment minister "The EU insists on the right of mobile workers to move from one country to another and, in certain places, they are entitled to benefits," he told the BBC. "We want to protect the rights of all EU citizens." Most people moving abroad already had offers of work or were looking for it, he said, rather than primarily wanting to take advantage of more generous benefits. "It may happen that some of them do not a find a job immediately. It is very important that, in these cases, the rights should be respected." He added that some people might choose to move to a country where benefits were higher but "since we have a European Labour market we have to accept this as a fact". But UK ministers fear taxpayers could be forced into handing out more than £2bn to EU nationals - including so-called "benefits tourists" - if the UK has to comply. 'Difference of opinion' Employment minister Chris Grayling, who met EU officials this week to discuss the issue, said there was a "very definite difference of opinion" between the UK and the Commission. "We are talking here, not about active citizens, not about people who are working but people who are inactive, people who are looking to come to the UK who are not going to work here." He said European law was "all over the place at the moment" and the UK had separately been told by the European courts to make disability benefit payments to a British citizen living in Spain. He said 13 EU states had proposed a "comprehensive review" of policy in the area in June and talks were continuing. Nigel Farage, leader of the UK Independence Party, which campaigns for Britain's exit from the EU, said: "It is not discrimination but simply a system to ensure that benefits are only paid to those who are entitled to them."

Fake death pensioner 'was greedy'

 

Anthony McErlean, 66, was jailed for six years for faking his own death in Honduras in 2009 to get a life insurance claim worth £520,000. He also admitted two counts of theft from a pension fund from the Port of London Authority of £27,000 pounds and £40,658 pounds from the Department of Work and Pensions. The pensioner had impersonated his wife to claim he himself had died after being hit by a truck as he was changing a tyre on a road in the Central American country. A fake witness statement was produced to back up story which said farm workers took his body away to the village of Santa Rosa De Aguan. Suspicious officials at the insurance company contacted the Insurance Fraud Bureau, who alerted the Police.

Irish expat charged with prostitutes' murder in Spain

 

The 42-year-old man, who is believed to be Irish, was arrested near his home in the resort of Mijas Costa, near Marbella on Spain's southern coast on Friday. The suspect's girlfriend and her mother were also being held over possible involvement in the serial slayings. Police suspect him of stabbing two prostitutes to death, the first in August and the second a month later. The killer was dubbed the "10 murderer" because both women were killed on the tenth of the month. The first woman, said to be 45 years old and of Argentine origin, was found dead in her apartment in the nearby resort of Calahonda. She had been stabbed at least 15 times and was found by her son with a pillowcase tied round her neck and a cushion over mouth. A month later police discovered the body of a 47-year-old Ecuadorian born woman at her home in San Pedro near Marbella. She had 12 stab wounds to her chest and neck. Both women reportedly advertised their services through local newspapers. Post mortem evidence suggested the two women shared the same killer. Police are investigating whether the suspect could be linked to other unsolved murders across Spain.

Blasts hit ex-home of Franco-era politician

 

A Spanish official says two homemade explosive devices detonated outside the childhood home of Manuel Fraga, the last surviving member of the regime of Gen. Francisco Franco. No one was hurt. An official with the Interior Ministry office in Lugo province in northwest Spain says Monday's blasts broke windows and damaged the facade of the house, which is being turned into a museum by the conservative Popular Party, which Fraga founded. The devices were composed of explosive power of the kind used to make fireworks and butane gas canisters used for camping stoves. The official said there was no immediate claim of responsibility. The official spoke on condition of anonymity in line with ministry rules. Fraga is 88 and has a seat in the Senate.

Spanish police hold suspected 'Irish serial murderer'

 

SPANISH police were last night reported to be holding an Irishman on suspicion of stabbing two women to death in their Costa del Sol homes. Leading Spanish TV station Telecinco described the suspect as Irish. Last night speculation was mounting that detectives were treating him as a suspected serial killer and looking to link him to a series of other unsolved murders across the country. Detectives established a link between the deaths of two women reported to have worked as prostitutes advertising their services through papers. A 45-year-old Spanish woman of Argentine origin was found in her luxury apartment in the Costa del Sol resort of Calahonda on August 11. She had been stabbed 15 times. A month later, police discovered the body of a 47-year-old Ecuador-born woman at her rented home near Marbella. She had bled to death after being stabbed up to 12 times in her chest and neck. Secrecy Due to the investigating judge granting a secrecy order on the case, spokesmen from Spain's National Police and Civil Guard were unable to confirm the name and nationality of the suspect or discuss local media reports he had been carrying false ID when he was arrested. A spokesman for the National Police said: "I've seen the reports suggesting the suspect is Irish and I've also seen other newspaper reports he's from central Europe, but I cannot give you any details about the man who is in custody." His Moroccan girlfriend and her mother were also being held. The man being held in custody was arrested on Friday at a gym near his home in Riviera del Sol near Fuengirola. The block where he was arrested is just a stone's throw from the home of missing Amy Fitzpatrick's mum, Audrey. Police are believed to have arrested him after stolen credit cards belonging to one of the victims was used to withdraw cash from ATMs in the area.

The Teewave AR.1 uses Toray carbon fiber for its chassis, crash structures, body, and interior.

This concept sports car was built, from initial sketches to working prototype, in just nine months.

(Credit: Gordon Murray Design)

 

Creating a new car can take years of development, but Gordon Murray Design put together a running prototype electric sports car in just nine months. The Teewave AR.1 was commissioned by Toray Industries to show off its carbon fiber production.

Toray says that its process can make carbon fiber components in just 10 minutes. The Teewave AR.1 uses Toray carbon fiber for its chassis, crash structures, body, and interior. Other Toray materials make up interior surfaces and components of the car.

 

Gordon Murray Design opted for a modest electric powertrain in the Teewave AR.1, meaning sluggish acceleration.

(Credit: Gordon Murray Design)

 

Those light carbon fiber elements make the overall weight of the Teewave AR.1 just 1,874 pounds. The lithium ion battery pack for the car makes up 530 pounds of that weight.

Gordon Murray Design did not specify the supplier of the electric power train, but its specifications are fairly standard for new electric cars hitting the market. Range is listed as 116 miles using the New European Driving Cycle test procedure, and charging time is 6 hours.

The Teewave AR.1 does not push the boundaries of electric car performance. Its electric motor, driving the rear wheels, only produces 63 horsepower and 132 pound-feet of torque. That means acceleration of 11.4 seconds to 62 mph.

You won't be able to buy a Teewave AR.1 anytime soon. The car will be used by Toray to demonstrate its carbon fiber capabilities. But Toray says its carbon fiber components will scale from a car as small as the Teewave AR.1 to any other size of vehicle.

What this concept also demonstrates is how quickly a new car can, from sketches to a working prototype, can be built. Components such as the electric drive train and suspension are modular, while the carbon fiber can be formed from molds rather than the more time-consuming stamping process for steel, which involves more tooling.

MINI COUPE

It was quite a good idea for Mini to make a coupe version as the fifth body derivative in the model line-up because the earlier variations basically covered the widest customer expectations possible.

If you loved the Mini for what it has always been, you'd easily go for the classic Hatch. Want more fun and there's the Convertible. Need to be a little pseudo and the Clubman awaits you. Crave for family practicality and the Countryman's yours.

But if you needn't any of those values but want a genuinely good looking and driving Mini for yourself, the Coupe is the perfect choice.

The removal of the compartment for rear passengers has allowed Mini to put in place a three-box profile to give the Coupe a nice coupe profile. Adding more fun is a helmet-style roof distinctively coloured from the body.

But that's just about it when it comes to the cosmetic test because the rest of the Coupe is plainly a Mini.

There's no differentiation when it comes to the lights or front grille. Simply, it's the roof that holds the key to your liking of the Coupe.

The fascia is just like in any other Mini: fun but flawed to use.

Despite the booted appearance, the Coupe's boot lid opens in a hatch manner (together with the rear windscreen) which, in essence, makes the Coupe more of a liftback.

No rear perches means that the Coupe has that kind of boot space rarely seen in any Mini. Mini has also taken the opportunity to design the interior boot cover with stylish twin cowls. In functionality terms, the Coupe is all what two people at most would ever need.

And turning to aesthetics again, the interior reaches the same dead end as the exterior in which distinction is only confined to the rear bit. The front seats, steering wheel and fascia are like in other Minis, with the latest aspect being fun in appearance but flawed in ergonomic terms.

But you really can't blame Mini for the vast similarities the Coupe bears to its other siblings.

It's a diversification of a specific model, in the first place, and not entirely all-new on its own. Hence, the need to share as many parts as possible.

The pop-up spoiler has both visual and dynamic benefits.

So if you're expecting the Coupe to feel distinctively special on the move, prepare to frown because it doesn't. However, that can never be considered a bad thing since Minis have always been known to be cars that are great to drive.

The running gear of the Coupe is predictable enough: the engines and transmissions are the ones you have seen around since the Mini's facelift in second-gen form with no changes in power and torque outputs.

The one highlighted here for the Coupe test drive in Germany this month is the range-topping 211hp 1.6-litre petrol-turbo and six-speed manual gearbox for the so-called John Cooper Works guise.

The chassis setup is basically just like in other Minis including a sporty tuning. Absence of rear seats has also allowed engineers to place a cross-member in their place to further increase body rigidity for even better handling.

With this in mind, the Coupe drives very much like the Hatch. Performance is brisk in a straight line and impressive when picking up from low engine revs and when exiting corners.

There's no doubting the Coupe's handling, too. This is as sporty as a car of this small size gets, and the way it grips at high speeds when slamming down the autobahn to its top speed is quite amazing. Special thanks go to a new rear spoiler that pops up at over 80kph (and disappearing again when dipping below 60kph).

Ah, that spoiler, the item much talked-about in the Coupe which many critics have described as more a cosmetic gimmick rather than one for dynamic reasons. But as things turned out during the international driving trials, there seems to also be much weight leaning towards the latter factor.

The Coupe also goes around into corners with the same conviction as the Hatch: superbly agile, finely balanced and virtually free of understeer. It's equally as capable as a rear-drive sports car like the Mazda MX-5, unless your idea of looking out from the car is through the side windows.

There’s some stow space behind the front seats... and more of it in the boot.

Speaking of the driving view, the Coupe does feel different from the Hatch in the sense that the front windscreen is more slanted and not as upright as in the Hatch or Clubman. And the Coupe's rear view is limited, although the view of the spoiler (and the stripes painted on it) looks cool.

A more serious downside (in terms of marketing and not engineering) is the unavailability of an automatic gearbox. Mini still insists that JCW cars must be manual. This means that Thais won't be getting this powerful JCW, unless they order it.

Instead, the Cooper S and Cooper variants will come at the year-end with six-speed slushers, the prior spec having steering-mounted paddle-shifters. There wasn't the chance to sample the Cooper S, but it's fair to say _ based on previous driving experiences of other Minis _ that the Coupe with this power treatment will still be a fast car to drive.

You need not have suspicions about the Coupe's ride: the underlying firmness of the chassis makes for a stiff ride, even on the slightest of potholes on German roads. We'd easily say that the ride on Bangkok streets would be terrifyingly hard.

Tony Blair is unaccountable over business interests, adviser says

 

More questions have been raised over Tony Blair's lucrative business activities after an adviser in his role as a Middle East peace envoy said the former Prime Minister continued to operate outside a defined code of conduct. Channel 4's Dispatches, due to be broadcast tonight, claims that Mr Blair is not required publicly to disclose his commercial interests as he would if he were an MP. Mr Blair combines a £2m-a-year consultancy with the US investment bank JP Morgan with his unpaid post in Jerusalem, where he is heading international efforts in preparation for a future Palestinian state. He also advises the insurance group Zurich Financial, while his company Tony Blair Associates signed a reported £27m-deal advising the Kuwaiti government. They are among a string of globetrotting business interests that have seen him build an estimated personal fortune of £20m since leaving office in 2007. But a senior French diplomat Anis Nacrour, who advised Mr Blair on security for three years, has fuelled doubts over the former Labour leader's public accountability.

European banks head towards another meltdown

 

Shares in some of Europe's largest banks fell by 10pc as the cost of insuring European lenders' senior bonds rose to record levels, according to credit default swap prices. The Markit iTraxx Financial Index of contracts on the senior debt of 25 banks and insurers climbed to an all-time high 315.5 basis points. The last banking crisis was regarded by most eurozone members as an Anglo-Saxon phenomenon caused by lax lending controls that resulted in major UK and US institutions either collapsing or having to take costly state-funded bail-outs. To offset the threat of another crisis spreading across the eurozone, European regulators ordered their banks to increase their liquidity buffers. Government bonds were generally viewed as the most liquid and least risky assets to hold. However, this policy has come back to haunt them, leaving many lenders across the region seriously exposed to the eurozone sovereign debt crisis. French banking giants BNP Paribas and Société Générale are among the hardest hit. Recent estimates suggest BNP has eurozone sovereign debt exposure of about €75bn (£65bn), amounting to roughly 6pc of total assets, including €14bn of Greek debt and €21bn of Italian government bonds. The other two major French banks, SocGen and Credit Agricole, each have exposures of a similar size. Between them, France's banks have about €56bn of Greek sovereign bonds alone, and have so far taken 20pc writedowns on this.

signs of an institutional run on French banks

 

Christine Lagarde, the managing director of the International Monetary Fund, urged Europe's leaders to bail out their fragile banks, as the boss of the eurozone's biggest bank, BNP Paribas, rejected fears that the financial sector was "in peril". Addressing journalists in Washington at the opening of the IMF's annual meeting, Lagarde said that Europe must tackle "this twin problem of sovereign debt and the need to strengthen capital buffers". She said: "It is critical that to fuel growth, banks be in a position to finance the economy, to finance enterprises, to finance households, to finance local governments. To do that they need to have the balance sheet that will actually support credit to the economy." Despite the recent stress tests carried out by the European Banking Authority, which suggested that most of the banks were well-placed to cope with the sovereign debt crisis, the IMF estimates that banks have taken a €300bn (£260bn) hit in the past year as a result of the growing risk of default by Greece and other vulnerable eurozone countries. Lagarde's call came as Baudouin Prot, BNP's chief executive, emphatically denied reports that it was in talks with Middle Eastern investors about securing a capital injection. "I formally deny this," he said. "We have no particular contact because we don't need a capital increase." But French bank shares – which have lost 50% of their value in three months – continued to fall as markets endured one of their worst trading days since 2009. BNP was off more than 5% and close rival Société Générale fell almost 10%. In the UK, bailed-out Lloyds Banking Group was down more than 10%, bearing the brunt of anxiety about a slowdown in economic growth. The FTSE 100 closed down 4.7% with large falls from mining companies, which make up a large part of the index and whose fortunes are closely tied to global economic prospects. Out of the 100 stocks, only technology company Autonomy – supported by a bid from Hewlett-Packard – fell by less than 1%. A survey from the crucial manufacturing sector, which chancellor George Osborne had hoped would lead an economic recovery, exacerbated the nervous mood by suggesting industry had been hit hard by the collapse of confidence around the world. The CBI's monthly industrial trades survey showed declining orders, both at home and abroad, and a rising backlog of finished goods, in the latest evidence that the recovery has stalled. Minutes from the latest meeting of the Bank of England's monetary policy committee revealed on Wednesday policymakers were preparing a new round of quantitative easing to respond to the worsening outlook. The gloom was echoed in the eurozone, where the early, "flash estimates" from the closely watched purchasing managers surveys signalled a sharp downturn in both manufacturing and services growth, adding to fears that Europe could be heading for a new recession. The Greek government announced new austerity measures this week to persuade investors that it is committed to tackling its debts. But investors are still fretting about the potentially devastating impact of a default on the region's banks. BNP insisted on Thursday that it could maintain a core tier one ratio – an important measure of financial strength – of 9% by January 2013 even if it sustained losses through the eurozone crisis. But Mohamed El-Erian, boss of the world's biggest bond investor Pimco, warned in a blog on the FT's website that there were "signs of an institutional run on French banks".

former X Factor judge and Girls Aloud singer said she would consider becoming a fashion designer and launch her own range.

Is Cheryl Cole the new Victoria Beckham? (Picture: PA)

The former X Factor judge and Girls Aloud singer said she would consider becoming a fashion designer  and launch her own range. 

Asked by The Guardian if she'd like her own fashion collection, she replied: 'Do you know what? I wouldn't rule it out, actually. I have loved designing these shoes. I haven't enjoyed a project so much in a long time. So, yes, it might be the start of something.' 

Chezza stepped out earlier this week during London Fashion Week to launch her shoe collection with website Stylistpick.com at The Home House. 

The star will also be choosing her favourite items from the online accessory store's collections and telling fans why she likes them in a new blog. 

Stylistpick’s chief creative officer Juliet Warkentin said: ‘We are thrilled to be working with Cheryl. Cheryl is the style icon and is amazingly warm, a quality that has made her the nation's favourite. 

'We believe that the launch will have a huge fashion impact; establishing fashion's greatest influencer as a major force in fashion design and further democratising fashion.’

Brit Designers Shine At London Fashion Week

"The truth is that all the ideas come out of here," he said.

"Before they used to be picked up by every other designer from around the world, diluted and communicated to other parts of the world and other people were making the money.

 

Models display creations by British born designer Osman

 

"Maybe now it is becoming a lot more important.

"I think Burberry, in a way, bringing their shows back to England has been very important because they have managed to bring the attention back here - that England isn't only a hub of ideas but it is also a business and there is an industry working and people are making it happen."

 

Rosario Dawson and Pippa Middleton on the front row at Temperley catwalk

 

The runways have seen a global standard of models showcasing collections, with designers including Burberry Prorsum, Christopher Kane, Erdem, Jonathan Saunders, Mario Schwab and Mary Katrantzou.

US-based media analytics company Global Language Monitor recently ranked London as the Global Fashion Capital, overtaking New York.

It said the Alexander McQueen wedding dress that Kate Middleton wore at her royal wedding moved London from third to top position.

 

IMF cuts growth forecast for UK for 2011 and 2012

 

The International Monetary Fund has cut its growth forecasts for the UK, in a report warning that the global economy is in a "dangerous new phase". UK gross domestic product is predicted to grow 1.1% in 2011, down from the 1.5% forecast in the IMF's previous World Economic Outlook report in June. The growth forecast for 2012 has been slashed from 2.3% to 1.6%. Foreign Secretary William Hague said the UK had the "discipline and determination" to tackle its deficit. But shadow chancellor Ed Balls called them "deeply concerning forecasts for both the UK and world economy". Independent economists are currently forecasting average UK growth of 1.3% in 2011, slower than the IMF, and 2% in 2012, ahead of the IMF figure. The IMF's UK forecast for 2011 falls behind projections for Germany, France, the US and Canada. Germany is forecast to grow 2.7% in 2011 while France is expected to show 1.7% growth. The US should advance 1.5% and Canada 2.1%. However, UK growth in 2012 should surpass both Germany and France, whose forecasts have been cut to 1.3% and 1.4% respectively. A spokesman for the Treasury said the Government remains committed to its deficit cutting plan. He said: "It is welcome that the IMF have forecast that the UK will grow more strongly than Germany, France and the euro-zone next year. "But it is clear that the UK is not immune to what is going on in our biggest export markets, with every major economy seeing lower forecasts for growth this year and next. "The Government remains committed to implementing the deficit reduction plan which has delivered stability, a policy stance that Christine Lagarde described as 'appropriate' earlier this month." Mrs Lagarde, head of the IMF, said the UK's budget deficit stance remained "appropriate" but "the heightened risk" meant a need for a "heightened readiness to respond".

Debt Crisis Infects Companies via Bank Loan Costs

 

Banks in Spain and Italy are curbing loans and charging customers more as aftershocks from the sovereign debt crisis drive their own borrowing cost higher. “They can’t lend what they don’t have, I suppose,” said Francesc Elias, the owner of Bomba Elias, a pumps and filters maker near Barcelona, which shelved a 100,000-euro ($144,000) plan to open a Bahrain office when it couldn’t get an affordable bank loan. “The banks are very clever about finding new ways to charge us more.” Spanish and Italian government bond yields surged to euro- era records this quarter as Greece struggled to avoid default, driving the cost of insuring against nonpayment by the region’s banks to a record and making it harder for them to sell bonds. Spain pays 5.35 percent for 10-year money, up from an average of 4.07 percent in the first half of 2010, while Italy pays 5.65 percent compared with a 4.05 percent average last year. As a result, banks such as Banco Santander SA, Spain’s biggest lender, are passing higher funding costs on to their customers. Santander’s return on Spanish loans rose to 3.63 percent in June from 3.37 percent in December, as the yield it pays on deposits fell to 1.32 percent from 1.54 percent. UniCredit SpA, Italy’s biggest lender, said on Aug. 3 it’s being more selective about who it lends to and levying higher rates. One out of three companies asking for credit in the second quarter period didn’t get it or obtained less than they asked for, according to Confcommercio, an Italian retailers’ lobby group. ‘Increasingly Stringent’ “The cost of financing our current activities has increased significantly,” said Riccardo Illy, chairman of Italian coffee maker Gruppo Illy SpA. “We don’t have any problems accessing credit because we’re large enough, but we know many businesses that are having trouble because banks’ requirements have become increasingly stringent.” Spanish banks including Santander and Bankia SA are shrinking their loan books after being pummeled by a collapse in credit demand for real-estate and surging loan defaults. Santander’s Spanish lending shrank an annual 7 percent through June, mirroring a trend in the Bank of Spain’s data that show a 1.9 percent annual drop in lending to companies and individuals. Lending at Bankia, the third-biggest lender formed from a merger of seven savings banks, was down 2.3 percent from December. The average interest rate on new company loans of as much as 1 million euros rose to 4.70 percent in July from 4.57 percent in June and 3.88 percent in December, according to the Bank of Spain. Companies took out 15.9 billion euros of those loans in July, down from 18.7 billion euros in the same month a year ago and 39.2 billion euros in July 2007, according to the central bank. ‘The Bottom Line’ “In our case, it’s not so much the issue of access to credit that’s the problem, it’s the fact that it costs more,” said Luis Zapatero, chairman of Bodegas Riojanas, a Spanish winemaker, which needs to finance putting wine aside to create reserve vintages that may not go on sale until several years after bottling. “Our financial costs have increased 15 percent and that goes straight to the bottom line.” Banks face a dilemma when trying to pass on increased funding costs in full because they risk driving more borrowers into default, said Barclays Capital’s Pascual. Bad loans in the Spanish banking system are near 7 percent of total lending, the highest since 1995. Increased Caution “Banks are more cautious in giving long-term loans because it has become more difficult to transfer increasing funding costs to customers,” said Giovanni Bossi, chief executive officer of Banca Ifis SpA, an Italian bank specializing in short-term loans to companies. As lending slides in Spain and banks struggle to finance themselves, the outlook for growth is worsening, said Antonio Ramirez, an analyst at Keefe Bruyette & Woods in London. Prime Minister Jose Luis Rodriguez Zapatero said Sept. 14 that Spain might miss its 1.3 percent growth target this year because of the “situation of financial tension and economic uncertainty, mainly because of Greece.” Banks, meantime, are struggling to sell bonds. The last benchmark-sized issue of 1 billion euros or more of debt by a Spanish bank was a sale of public-sector covered bonds by Santander in June. UniCredit paid a record spread for Italian covered bonds when it raised 1 billion euros from a sale of 10- year notes that yielded 215 basis points more than the benchmark mid-swap rate. ‘Negative Feedback Loop’ “It’s the negative feedback loop between what’s happening to the sovereign and the effect on banks and the economy,” said Antonio Garcia Pascual, chief southern European economist at Barclays Capital in London. “To a large extent, the problems facing Spanish lenders also apply to Italy.” As financing costs rise in Italy, analysts have started revising down their growth estimates for that country. Nomura International Plc economists revised their Italian gross domestic product growth estimate for 2012 last month to 0.5 percent from 0.8 percent previously. “The increased financial costs will become more evident in the dynamics of the economy,” said Giada Giani, an economist at Citigroup Inc. in London. “I definitely think that the deterioration of financial conditions is a key factor in the macro-economic picture.” A survey by Spain’s national statistics institute published in May showed that one in every four companies that sought loans in 2010 failed in the attempt, compared with 10 percent in 2007. Half of the companies surveyed said they’d been able to line up the credit needed, compared with 80 percent in 2007, according to the survey. Meanwhile, Spanish banks are also demanding higher fees from customers, Bank of Spain data show. The average six-month charge for a retail customer current account jumped 15 percent to 25.80 euros at the end of August from 22.36 euros in December, according to the regulator. “There’s a double effect because commissions have also increased dramatically,” said Elias, the owner of the pumps and filter maker, who has cut his workforce to 12 from 20 in the past year. “It affects any kind of investment plan.”

Turner Says Murdoch 'Going to Have to Step Down' From News Corp.

 

Billionaire Ted Turner said News Corp. Chairman and Chief Executive Officer Rupert Murdoch will probably have to leave the helm of his media company after a phone-hacking scandal that began at one of its newspapers. "I think he's going to have to step down," Turner, 72, said in an interview on Bloomberg Television. "He hadn't survived anything like this. This is serious." News Corp., based in New York, has come under fire this year over allegations its News of the World tabloid hacked into the voice mails of murder victims and paid police for stories. The public outcry forced the company to close the 168-year-old London newspaper and drop its 7.8 billion-pound ($12.2 billion) bid for full control of British Sky Broadcasting Group Plc. Murdoch and his son James, deputy chief operating officer at News Corp., were called before U.K. parliament in July to answer questions about the scandal. The elder Murdoch's statements that he didn't know about phone-hacking or police payments aren't sufficient, Turner said. "Well, he should have known," said Turner, who sold his Atlanta-based Turner Broadcasting, owner of CNN, TBS and the Cartoon Network, to Time Warner Inc. in 1996. "He was chairman of the board. He's responsible. I took responsibility when I ran my company. You never heard me say, 'Well, I didn't know.'"

Credit card stocks rally on Google Wallet news

 

Shares of credit card networks rallied on Tuesday after Google Inc. announced an expansion of its Wallet mobile payments system. Google said after markets closed Monday that it was adding Visa, American Express and Discover to its payment system, which aims to make cellphones the next credit cards. Google said it has licensed the right to add virtual "cards" from the three payment networks to Wallet. MasterCard Inc. is already part of the project. With a card in the virtual Wallet, owners can pay for merchandise by tapping their phones on wireless-capable payment terminals, instead of swiping a credit card. Sanjay Sakhrani, an analyst with Keefe, Bruyette & Woods, said in a research note that Google's deal with Visa "paves the way for global Visa-issuing banks to add their credit, debit and prepaid accounts to Google Wallet." Sakhrani, who follows Visa Inc., said the movement to phone-based payments is on "a steady course to achieve implementation," provided more phones and phone companies use compatible systems, and more merchants accept the payments. Google is already working with all major smartphone makers whose products run its Android software to incorporate chips that communicate with payment terminals. Visa plans to bring out its own, competing mobile wallet application. Shares of Visa rose $3.30, or 3.7 percent, to $93.33 in afternoon trading, while shares of MasterCard Inc. gained $11.63, or 3.3 percent, to $359.61. Discover Financial Services rose 77 cents, or 2.9 percent, to $27.04, and American Express Co. added $1.09, or 2.2 percent, to $49.77.

Russian hacker sells home and cars to pay RBS

 

Russian hacker who breached the security of RBS' WorldPay service and stole $9m (£6m) has had his property sold to compensate the bank. Viktor Pleshchuk's two flats and two cars, a BMW and a Lada, were auctioned off in Saint Petersburg on Monday. According to a Russian news portal RIA Novosti, the sale raised 10m roubles (£200,000). It reported that the money had been transferred to RBS, something the bank was unable to confirm. Mr Pleshchuk and seven other Eastern European hackers managed to get their hands on the personal data of thousands of RBS customers in 2008. They used the information to create fake debit cards and withdraw huge amounts of cash from ATMs in as many as 280 cities around the world. The money was taken from 2,100 bank cash machines within 12 hours in the US, Russia, Estonia, Italy, Hong Kong, Japan and Canada. Sophisticated plan Kaspersky Labs chief security expert Alex Gostev said that the actual hacking was not the most complicated task the criminals had to deal with. Continue reading the main story “ Start Quote The technology used to commit such crimes is increasingly available and the penalties are extremely light” Joseph Menn Financial Times reporter "The most interesting part was the final stage of the attack - the organisation of masss withdrawals all over the world," he said. "They had to find more than 150 people in [numerous] cities, give each one of them the instructions and the fake cards, organise synchronised withdrawal - all of this shows that it was a group of highly skilled professionals". Once arrested, Mr Pleshchuk pleaded guilty. In 2009, he and the rest of the hackers were also pursued by authorities in the US. The eight were charged in the state of Georgia, where the Atlanta-based card-processing company, RBS WorldPay, was targeted. In September 2010, Mr Pleshcuk received a six-year suspended sentence and an order to pay $8.9m (£6m) in restitution. He managed to avoid jail by pledging to sell his property and compensate the bank for the damage caused. Online bank fraud Brian Krebs, an American journalist specialising in cybercrime and computer security, recently tracked an ATM heist that was eerily similar to the RBS attack. He explained that the attackers managed to get into the US-based FIS - Fidelity National Information Services - one of the world's largest processors of prepaid debit cards. They then planted a remote access trojan virus and used the data that they obtained to top up the reloadable prepaid debit cards they had compromised. After that, they cloned the stolen debit cards, sent copies of them to co-conspirators in more than six countries, and raided the bank's accounts. Mr Krebs said the FIS incident was very much like the RBS case, "clearly organised and professional". "When the funds on the cards reached close to zero, the hackers used their remote access to top up the cards again," he told BBC News. "They did this over and over and stole [millions] in less than 24 hours. These guys had access, they had a plan, and they had the means, and they executed it brilliantly." Joseph Menn, a Financial Times reporter who covers technology-related privacy and security issues, said that similar attacks are still netting criminals millions. "The FBI said last week it is investigating online bank fraud crimes with losses totalling $85 million," said Mr Menn. "The problem is that the technology used to commit such crimes is increasingly available and the penalties, as we have seen with the Pleshchuk case, are extremely light even in the rare event of an arrest, due largely to corruption. "From a cost-benefit perspective, there is no reason for criminal enterprises not to double their bets on international bank crimes, so the problem will continue to get worse.

Clegg condemns 'grotesque' hacking

 

No amount of money can absolve News International from hacking in to the phone of Surrey murder victim Milly Dowler, Liberal Democrat leader Nick Clegg has said , following the disclosure that the company was about to settle its case with the teenager's family. Rupert Murdoch is set to donate £1 million to charity from his own pocket, while the Dowlers themselves will receive in the region of £2 million in a separate payout from News International, the publishers of the now-closed News of the World. The company has confirmed it is in "advanced negotiations" with relatives of the 13-year-old, who was abducted and killed by Levi Bellfield in 2002. On Tuesday Mr Clegg said no amount of money could absolve the company for what happened. He said: "It is not for me to decide what money News International offer the Dowlers. I think it is very, very important we now give the Dowler family the time and space they need to rebuild their lives and move on. "I think the reason why people were so outraged by the invasion of the privacy of the Dowler family is that they weren't celebrities, they weren't politicians, they hadn't asked to be put on the front page of the nation's newspapers. I have met them and they are a lovely, strong, every-day family who lost their daughter and were dealing with that terrible tragedy and even then these journalists - it's just grotesque - were invading their privacy. "In a sense I think, and I am sure the Dowlers feel the same, that no amount of money can absolve people for what they did." News International is reported to have set aside £20 million for payments to phone hacking victims, but a source said the size of the expected compensation for the Dowlers reflected the "wholly exceptional circumstances" of their case. Sources close to the Dowlers have said any agreement will feature a donation to charity. It is not yet known which cause, or causes, would benefit. A News International spokesman said: "News International confirms it is in advanced negotiations with the Dowler family regarding their compensation settlement. No final agreement has yet been reached, but we hope to conclude the discussions as quickly as possible."

Ms Moran, 56, looked a shadow of her former self as she arrived to face 21 charges at Westminster Magistrates’ Court in central London.

 

One count alleges that she falsely claimed £22,500 for dry rot on a home in Southampton more than 100 miles from her constituency.

The former Labour member for Luton South sobbed throughout the brief hearing and was passed a tissue by a court official.

No plea was entered and jurisdiction in the case was declined by District Judge Daphne Wickham on the grounds of the nature and complexity of the charges and sums involved.

They allegations consist of 15 counts of false accounting and six of forgery.

Moran, of Ivy Road, St Denys, Southampton, was remanded on unconditional bail to appear at London’s Southwark Crown Court on October 28 for a plea and case management hearing.

The former politician spoke only briefly, in a faltering voice, to confirm her name and date of birth.

Moran looked almost unrecognisable as she arrived at court this morning with a dark grey beret over her head, wearing glasses, and clutching a handkerchief to her mouth.

The auburn tresses and bright clothes seen in previous photographs were replaced by a sober dark suit and blonde hair.

In court she continued to sob into a handkerchief as she waited for the hearing to start.

The criminal probe into Moran began after an investigation by The Daily Telegraph.

Margaret Moran in May 2009 and arriving at Westminster Magistrates Court today (PA/NICHOLAS RAZZELL)

Six held in major anti-terror probe

 

Six men have been arrested in connection with one of the most significant intelligence-led counter-terrorism operations this year. The men were detained at or near their homes in Birmingham on suspicion of the commission, preparation or instigation of an act of terrorism in the UK following a joint investigation by both police and MI5. It is understood the investigation relates to suspected Islamist extremism, but it is not thought that an attack or threat was imminent. A seventh person, a 22-year-old woman, was arrested on suspicion of failing to disclose information contrary to the Terrorism Act 2000, police said. West Midlands Police said the "large-scale operation" had been running for some time and had been subject to regular review, adding that the action was necessary "in order to ensure public safety".

Dale Farm residents celebrate court victory

 

Dale Farm residents have won a last-gasp injunction restraining Basildon Council from clearing structures from the site pending a further hearing at London's High Court on Friday. Mr Justice Edwards-Stuart granted the order at London's High Court on the basis that there was a realistic apprehension that the measures to be taken - while genuinely believed in by the council - "may go further" than the terms of the enforcement notices. Travellers and their supporters had barricaded themselves behind newly built brick walls and chained themselves to fences as officials prepare to evict them from an illegal site in southeast England at the end of a decade-long battle. Supporter Jake Fulton said: "This is really great news but this isn't over yet. It makes us feel we have a really good shot at defending travellers in a way that has never happened before." The showdown between the bailiffs, travellers and a variety of protest groups who have joined their cause marks the climax of one of Britain's most contentious and bitter planning rows in recent years. Basildon Council said last-ditch talks had broken down on Monday morning after the travellers asked for the eviction to be delayed until November 22.

Milly Dowler's family have been offered a multimillion-pound settlement offer by Rupert Murdoch's News International,

Phone hacking: Milly Dowler's family are understood to have been offered a seven-figure settlement. Photograph: Surrey Police/PA

Milly Dowler's family have been offered a multimillion-pound settlement offer by Rupert Murdoch's News International, in an attempt to settle the phone-hacking case that led to closure of the News of the World and the resignation of the company's chief executive, Rebekah Brooks.

It is understood that News International has made a settlement offer estimated by sources at close to £3m, a figure that include a £1m donation to charity. But the publisher has not yet reached agreement with the Dowler family, whose lawyers were thought to be seeking a settlement figure of closer to £3.5m.

The seven-figure sums under negotiation are far larger than other phone-hacking settlements reached, reflecting the fact that the phone-hacking case affected a family who were victims of crime. Thirteen-year-old Dowler went missing in March 2002 and was later found murdered.

It emerged in July that Milly Dowler's mobile phone had been hacked after her death. Voicemails were accessed on behalf of the News of the World, and messages left for her were deleted to make room for more recordings. This gave the family false hope that she was still alive, because messages were disappearing.

On Monday afternoon there was growing speculation that a deal is close, although other sources familiar with the negotiations indicated that there are still enough matters unresolved to mean that an agreement in principle had not yet been reached behind the scenes.

Sienna Miller accepted £100,000 from News International after the publisher accepted unconditional liability for her phone-hacking and other privacy and harassment claims in May. A month later Andy Gray accepted £20,000 in damages plus undisclosed costs.

Other lawyers bringing phone-hacking cases are privately indicated that they would be advising many of those bringing actions to try and reach a settlement rather than take their cases to lengthy and expensive trials. A handful of cases have been taken forward as lead actions by Mr Justice Vos, to establish a benchmark for settlements in future lawsuits.

Murdoch met with the Dowler family in July, shortly after the original story about hacking into her phone broke, making what the family's lawyer, Mark Lewis, said was a "full and humble" apology. The News Corporation chairman and chief executive "held his head in his hands" and repeatedly told the family he was "very, very sorry".

'Gazanging’ rises as home sellers get last-minute cold feet

 

54,000 buyers were “gazanged” in the first six months of this year – with buyers now more likely to be gazanged, where they are left hanging, than gazumped, where a rival buyer’s higher offer is accepted, or to gazunder, where they lower their offer having already had it accepted. A survey suggests one in four sellers changed their mind because they could not find a suitable property to move to, while others got cold feet because of concerns about the state of the housing market. The number of people pulling out has risen by 20 per cent since last year. One in six said they pulled out because they were fed up with legal complications. It means thousands of buyers who have spent money on surveys and solicitors’ fees are left out of pocket. Phil Spencer, a broadcaster and property expert, said: “Gazanging is something that’s on the up. The seller accepts an offer, but then decides to pull out and stay put, leaving a very unhappy buyer and a broken property chain. In such a volatile market, it’s not that surprising that many more sellers are changing their minds at the last minute, especially when there are so few suitable homes available. “There are lots of reasons why gazanging has started to happen. One of the biggest frustrations is the drawn out conveyancing process and in particular the bad service often experienced. Ask the vast majority of buyers what it was like and they will tell you conveyancing took longer than expected, cost more than they planned and that they felt confused. “There are far fewer houses on the market and this means that people are finding it more difficult to find their dream home, so much so that some sellers eventually decide to stay put.” More than a quarter of sellers who opted to stay put said they could not find a suitable property to buy. The overall number of transactions declined by a quarter in the past 12 months. Figures from the Land Registry and Council of Mortgage Lenders show sales fell from 62,705 in June 2010 to 46,700 in June this year. Spencer added: “Limited access to credit means that many more people struggle to secure a mortgage, leaving them high and dry when it comes to buying their next home. And uncertainty about what is happening with house prices can also make sellers reassess their plans.”

UBS raises rogue equity trade losses to $2.3 billion

 

Swiss bank UBS on Sunday increased the amount it said it had lost on rogue equity trades to $2.3 billion and alleged a trader concealed his risky deals by creating fictitious hedging positions in internal systems. UBS stunned markets on Thursday when it announced unauthorised trades had lost it some $2 billion. London trader Kweku Adoboli was charged on Friday with fraud and false accounting dating back to 2008. "The loss resulted from unauthorised speculative trading in various S&P 500, DAX, and EuroStoxx index futures over the last three months," UBS said in a brief statement. "The loss arising from this matter is $2.3 billion. As previously stated, no client positions were affected." Global stock markets have been extremely volatile in recent months, plunging on concerns over euro zone and U.S. debt crises and then rebounding on hopes for their resolution. The loss is a disaster for the reputation of Switzerland's biggest bank, which had just started to recover after it almost collapsed during the financial crisis and faced a damaging U.S. investigation into aiding wealthy Americans to dodge taxes. "Loss even more. Reads like they're making excuses," said Helvea analyst Peter Thorne of the UBS statement. The new scandal has prompted calls for its top managers to step down and for its investment bank to be split into a separate unit from its core wealth management business. Chief Executive Oswald Gruebel, who was brought out of retirement in 2009 to turn the bank around, was quoted in a newspaper on Sunday as saying he is not considering quitting over the crisis, but said it was up to the board to decide. In a memo to staff on Sunday, he said: "Ultimately, the buck stops with me. I and the rest of senior management are responsible for dealing with wrongdoing." Swiss newspapers quoted unnamed insiders as saying the UBS board and important shareholders such as the Singapore sovereign wealth fund were still backing Gruebel, with immediate changes at the top the last thing the bank needed. Gruebel is widely expected to present plans to drastically cut back the investment bank at an investor day in November. INDEPENDENT INVESTIGATION The bank, whose three keys logo symbolise "confidence, security, discretion," has pulled its "We will not rest" global advertising campaign for now, that was designed by advertising agency Publicis to try to rebuild its image. Meanwhile, UBS client advisers have been writing to customers to reassure them of the underlying financial strength of the bank despite the trading loss, a spokesman said. "That we now suffer this setback at this point in our efforts to improve our reputation is very disappointing. This incident also sets us back somewhat in our capital-building efforts," Gruebel said in his memo. "However, I wish to remind you that our fundamental strengths as a firm remain intact... we remain one of the best capitalized banks in the industry. UBS said its board of directors had set up a committee chaired by independent director David Sidwell, former chief financial officer at Morgan Stanley, to conduct an independent investigation into the trades and the bank's control systems. The bank said it had covered the risk resulting from the unauthorised trades, and its equities business was again operating normally within previously defined risk limits. It said the trader had allegedly concealed the fact his trades violated UBS risk limits by executing fake exchange-traded fund (ETFs) positions. "Following inquiries directed to him by UBS control functions that were reviewing his positions, the trader revealed his unauthorised activity," the bank said. "The positions taken were within the normal business flow of a large global equity trading house as part of a properly hedged portfolio," UBS said. "However, the true magnitude of the risk exposure was distorted because the positions had been offset in our systems with fictitious, forward-settling, cash ETF positions." The Sunday Times cited unnamed insiders saying the trader placed bets worth $10 billion before his losses were detected. ETFs are index funds listed on an exchange and can be traded just like regular stocks. They try to replicate index performances and offer lower costs than actively managed funds, but regulators have warned about risks from some complex ETFs. In the past three months, DAX futures have fallen 22 percent, Eurostoxx 50 futures have dropped 20 percent and S&P 500 futures have dipped 4 percent. The instruments involved in the UBS case are similar to those that Jerome Kerviel, the rogue trader at Societe Generale, traded when he racked up a $6.7 billion loss in unauthorised deals in 2008. Christoph Blocher, vice-president of the right-wing Swiss People's Party (SVP) -- the country's biggest -- renewed his calls for a splitting off of the investment bank. "One has to seriously examine a ban on investment banking for commercial banks," he told the SonntagsZeitung, adding his party might team up with the center-left Social Democrats to push for such a move.

Stolen credit cards lead to $360,000 fraud

 

FIVE people have been charged over the use of false identities and stolen credit card details to obtain property worth a total of $360,000 in Perth. The first of the two separate operations began in early August and involved detectives gathering evidence, executing search warrants and seizing vehicles, computers and false identity documents. Acting Detective Inspector Pete Davies said a 25-year-old man allegedly used computer editing software to create false identity documents, which he used to create six new false identities for himself. "He then allegedly opened 17 bank accounts in the false names and successfully applied for drivers licence learners permits in these false names," he said. Police allege the false identities were used to buy vehicles from Perth car dealerships while entering into contracts with finance companies. Related Coverage Global card skimming scam smashed The Daily Telegraph, 15 Aug 2011 Man No17 charged in mortgage fraud Courier Mail, 2 Aug 2011 Charges over million-dollar fraud Courier Mail, 30 Jun 2011 Veda, Suncorp tackle ID theft The Australian, 2 May 2011 Hacker guilty of $33m credit card scam Herald Sun, 21 Apr 2011 "He also entered into insurance contracts for the encumbered vehicles using the false identities," A/Det Insp Davies said. The man then fraudulently obtained $210,000 in property including two Nissan Navara utes, a Ford XR6 ute, a Holden SV6 sedan and two Holden SS utilities. He allegedly on-sold several of the vehicles online and forged a letter showing the vehicles were free of financial encumbrance. He was charged with 12 counts of fraud, six counts of applying for a drivers licence while suspended, five counts of forging or altering vehicle licences, possessing a false Australian travel document, and false or misleading representation. In a separate operation, police charged four people with a total of 78 offences including fraud, attempted fraud, receiving and possessing stolen or unlawfully obtained property. Police say the group obtained $150,000 worth of electrical goods, perfume, jewellery, household goods and alcohol using stolen credit card information in a series of "card-not-present" transactions. The offenders allegedly obtained the credit card numbers by "dumpster diving" in bins and then made calls to businesses and used online purchasing facilities to obtain the goods. They allegedly used false identities, created false email accounts and used different phone numbers to deceive the businesses, which accepted the transactions. A 40-year-old man appeared in court on July 19 and pleaded guilty to 40 counts of fraud, six counts of attempted fraud and eight counts of possessing stolen or unlawfully obtained property. A 38-year-old woman is due to appear in the Perth Magistrates Court on September 19 charged with nine counts of fraud and two attempted fraud charges. A 33-year-old man is due to reappear in the Perth Magistrates Court on September 22 on 11 counts of fraud and one count of receiving. A 56-year-old man is due to reappear in the Perth Magistrates Court on September 29 charged with attempted fraud. A/Det Insp Davies said the incidents should serve as a warning to everyone to be careful with how they secure and dispose of identification documents and bank statements. "It is not safe to throw papers in the bin, as offenders go through rubbish to locate other people's identification papers, which facilitates identity theft and fraud," he said. "Businesses are reminded to be careful accepting card-not-present transactions and consider requesting additional photo identification from customers to reduce their risk of falling victim to fraud." A/Det Insp Davies said businesses that collect other people's identification documents should also secure those records and ensure documents were not thrown in bins or left on unattended office desks.

'Rogue trader' Kweku Adoboli faces fraud charges dating back to 2008

 

tearful Kweku Adoboli, the alleged rogue trader at the centre of a $2bn (£1.3bn) loss at Swiss bank UBS, appeared before magistrates on Friday to be charged with fraud and false accounting dating back to 2008. A clerk at City of London magistrates court handed the 31-year-old Ghanaian a tissue as the 15-minute proceedings began, after which the one-time star trader was led away to remain in custody until a bail hearing on 22 September. Adoboli's charge sheet appeared to allege that he had taken steps to cover loss-making trades as long ago as 2008. A committal hearing was set for 28 October. The timescale of the allegations will raise questions about risk management procedures at the bank, put intense pressure on the chief executive, Oswald Grübel, and fuel calls from some Swiss politicians for the bank to exit its investment banking business, putting thousands of jobs at risk in the City. Many UBS bankers already fear for their year-end bonuses. Smiling at times, Adoboli spoke only to confirm his name, address and date of birth, while the Swiss bank refused to add anything to the statement it issued on Thursday when it revealed it had called in City of London police at 1am to investigate Adoboli after uncovering "unauthorised trading". British-educated Adoboli – whose passport spells his name as Kwaku – joined UBS in 2006 and was a member of the so-called delta one trading desk, where, among other things, he traded exchange traded funds (ETFs). These complex financial instruments, on which the regulators issued warnings earlier this year, are structured to mimic market movements. His registration with the Financial Services Authority was switched to "inactive" on Friday at the request of the firm – indicating that he is no longer performing that role. Two charges claim that Adoboli falsified records of ETFs between October 2008 and December 2009 and then January 2010 and September 2011. A third charge alleges that he committed fraud between January 2011 and September 2011 while senior trader in global synthetic equities. His lawyers at Kingsley Napley – the law firm that advised Nick Leeson, the rogue trader who broke Barings – did not issue a statement or enter pleas to the charges. His father, John, told Reuters from Tema, Ghana: "I want the world to have an open mind. He should not be sentenced before the trial begins." The former United Nations worker is hoping to fly to the UK this week and is applying for a visa. The City of London police, who arrested Adoboli at his luxury home on the edge of the City at 3.30am on Thursday, said their investigation was continuing, in "close collaboration" with the Financial Services Authority, the Serious Fraud Office and the Crown Prosecution Service. Adoboli's trading activity, by its nature, required him to perform frequent numbers of small trades. One of the last postings on his Facebook page – "need a miracle" – came at around the time the Swiss National Bank intervened to reduce the value of the Swiss franc, which has prompted speculation that this helped expose his losses. The bank, which employs 6,000 staff in London, will now have to pay for a detailed investigation being launched by the FSA and the Swiss regulator, Finma, into the control systems at UBS, the failures that permitted the losses to occur, and details of the unauthorised trading activity. The "comprehensive, independent investigation" will be carried out by one of the big four accountancy firms, although no timescale has been given for when it might be completed. The discovery of the "unauthorised trading" has come at a sensitive time for the City, coinciding as it does with the third anniversary of the collapse of Lehman Brothers and coming after calls from politicians in the UK and Switzerland for the break-up of high street banks to separate "casino" investment banking arms. "It shows that investment banking is a high-risk field and it's important that we clearly separate systemically important functions from the rest of the banking business," said Caspar Baader, of the Swiss People's party. Switzerland's Social Democratic party called for "consequences" such as a ban on "proprietary trading" and replacing "egomaniacal, arrogant and irresponsible managers". Even a year after the banking crisis of 2008, during which Swiss taxpayers contributed to a $60bn bailout of UBS, the nation's banking assets totalled SFr3.47tr – nearly seven times the country's gross domestic product. New laws requiring UBS and Credit Suisse to rein in risk and hoard capital to a higher level than required elsewhere in Europe have already been passed in the first chamber of the Swiss parliament and were debated this week in the upper house, known as the national council. Moves to hive off riskier investment banking and private client operations from those banking functions vital to the smooth operation of the Swiss economy also form part of the legislation, but would not be implemented immediately. Banking analysts believe UBS may now have to scale back its investment banking business and axe even more jobs on top of the 3,500 group-wide cuts announced last month in a bid to save £1.5bn – a similar amount to the losses the bank now fears it faces from the alleged "unauthorised trading". "We are making further cuts in our 2012 profit estimates, as we believe that UBS is set to announce a more streamlined investment banking business strategy in November, with certain business units being closed and additional jobs being lost. This is part of the bank's efforts to address the long-term structural issues within the financial services industry," said Christopher Wheeler, an analyst at Mediobanca. Ratings agencies warned of a downgrade of the bank's credit rating. Standard & Poor's placed the bank on its Creditwatch list, citing factors including the "setback to UBS's efforts to rebuild its reputation and demonstrate strengthened risk-management following its weak performance in 2007-2009", when it almost collapsed during the credit crunch.