Thursday newspaper round-up: FSA backs tax on City, Lloyds, National Express

27th Aug 2009 05:53

The head of Britain's top banking watchdog supports the idea of new global taxes on financial transactions, warning that a "swollen" financial sector paying excessive salaries has grown too big for society, writes the FT. Adair Turner, chairman of the Financial Services Authority, says the debate on bankers' bonuses has become a "populist diversion" and that more drastic measures may be needed to cut the financial sector down to size.Lloyds is considering creating a new form of capital that it could offer to shareholders in an attempt to cut its use of the Government's insurance scheme for toxic assets, reports the Times. It is discussing a new form of capital instrument to which investors could subscribe and which would convert into ordinary shares. The attraction for investors would be that this instrument would pay interest.The National Express board is understood to be asking shareholders to choose between a £350m rights issue or a takeover proposal from CVC Capital Partners, working with the Cosmen family from Spain. Institutional investors are expected to express a preference in the next few days after being approached by the board of the embattled transport group this week, according to the Times. A future German government may be willing to finance a restructuring of Opel under the ownership of General Motors if the sale of GM's German arm to Magna, the Canadian supplier, falls through, the Financial Times has learnt.GM Europe, which also owns Vauxhall, has sought professional insolvency advice to prepare for the possibility that it may not attract a firm buyer in time to rescue the carmaker, says the Times. Vauxhall executives believe that if a firm offer for GM Europe is not made within days, the carmaker faces three scenarios, one of them bankruptcy.Germany could directly intervene in the credit insurance and lending markets as soon as September to head off a looming credit crunch, as it fears the economic recovery may soon falter as banks refuse to roll over loans, according to the Telegraph.Five has ruled out buying the pioneering reality TV series Big Brother after rival Channel 4 announced it will axe the show. Five, which is owned by Europe's biggest television company, RTL, told the Daily Telegraph that the show has run its course and it has no plans to buy it.The Government's 2.5 per cent cut in VAT has had almost no effect on shoppers, claims accountancy firm PricewaterhouseCoopers. A survey of 2,000 consumers commissioned by the firm found that 88 per cent said that the cut had had no impact on their spending, reports the Independent.General Electric is looking to sell its security business, which makes alarms, surveillance systems and other safety products, and hopes to attract bids in the range of $2bn for the unit, according to people close to the matter, says the FT.