Thursday newspaper round-up: RBS, Lloyds, Setanta

11th Jun 2009 06:05

The taxpayer could recover part of Britain's £70bn investment in the state-backed banks even before their share prices recover under plans being examined by UK Financial Investments, the Government body managing the stakes.John Crompton, the former Merrill Lynch banker in charge of the taxpayer's holdings in Royal Bank of Scotland and Lloyds Banking Group at UKFI, has spoken to advisers about selling an "exchangeable bond" in the two lenders, says the Telegraph.It emerged on late on Tuesday that Setanta co-founders Michael O'Rourke and Leonard Ryan were planning a last-ditch rescue attempt and, while they are not believed to be in a position to provide the necessary funding themselves, they are turning to wealthy friends in an effort to save the company. Sources said that Denis O'Brien, the Irish telecoms tycoon, was among those approached by the co-founders for a cash injection, although his spokesman refused to comment. He is not believed to be interested, writes the Telegraph.Lord Mandelson will meet executives of Magna in Berlin today to extract specific job commitments from Vauxhall's new Canadian owner, reports the Times.Justin King, the chief executive of J Sainsbury, was rewarded with a £5.4m remuneration package after his turnaround plan drove a strong performance at the supermarket chain this year, according to the Independent.Leading City figures warned on Wednesday that the political turmoil surrounding Gordon Brown was threatening his government's ability to defend them from tough new European rules that could make it harder for them to compete with rivals abroad, says the FT.Latvia expects to access the next tranche of its €7.5bn (£4.5bn) economic rescue loan soon and will not need to devalue its lat currency, Prime Minister Valdis Dombrovskis said on yesterday, writes the Independent.The European Central Bank is paying close attention to mounting difficulties at 25 banks deemed crucial to the health of the eurozone financial system, fearing another wave of bank turmoil next year if the recession drags on, reports the Telegraph.Investors in Northern Rock yesterday began their latest legal challenge to Treasury regulations on the way in which the failed bank should be valued, amid continuing anger that the rules mean they are almost certain not to get any compensation for their shares, says the Independent.Royal Bank of Scotland is planning to transfer thousands of its small business customers to a separate division because it cannot make a profit out of them. The move will lead to some of them being treated more harshly than other customers, according to bankers who have contacted the Times.The proposed $2.5bn (£1.5bn) merger between live music giants Ticketmaster Entertainment and Live Nation was yesterday thrown into doubt after it was referred for a second regulatory inquiry, this time in the UK, writes the Independent.