Financial Times Summary

Wed 15 Oct 2008

Fortis
Shareholders in Fortis found out what the remnants of their part-nationalised, part sold-off company were worth yesterday as the financial group's share price plunged to its lowest level following a six-day suspension. The stock, which closed at $7.36 on October 3rd,resuming trading in Brussels at 1.21 euros in Amsterdam, its lowest level since the company grew to become Belgium's biggest financial group was formed 18 years ago.
Societe Generale & BNP Paribas
France's two biggest banks yesterday ruled out rushing into claiming a share of the government's capital fund, saying they were already well-capitalised. "We don't need this public facility," chief executive of Societe Generale said in an interview. BNP Paribas, France's biggest bank, was less categorical, saying "at present we don't have any need to raise capital" but added that it would keep his options open. The banks' reaction followed a meeting with President Sarkozy in which the French head of state urged financial institutions to continue providing loans to small businesses and households.
Axa
Asset managers cannot help but wonder how their industry will be affected by the banking crisis. Are we facing the usual bear market redemptions or a fundamental shift in client needs? Martin Hall, UK chief executive of Axa Investment Managers, tends towards the latter. He suggests that the big theme of the past few years, namely multi-asset allocation, is wearing thin.
Lloyds TSB
The planned Lloyds TSB-HBOS mega-bank risks harming customer interests unless tough action is taken to make the financial services industry more competitive, the new consumer super-watchdog warned the government yesterday. Consumer Focus urged Lord Mandelson, secretary of state for business, to strengthen supervision of both the new banking behemoth and the wide mortgage market it will dominate.
RBS
An independent Scotland could not have bailed out its struggling banks. Gordon Brown said yesterday in a side-swipe at nationalist plans for independence. The financial strength of the union made the £32bn capital injection possible for the Royal Bank of Scotland and HBOS, the prime-minister told the BBC, which "would not have been possible with a Scottish administration."

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