Boom and bust

Siobhan Kennedy uncovers some numbers in the Barclays accounts which suggest that – on bonuses at least – the bank might not “get it” in the way its chief executive promises after all.

In a gloomy autumn statement, Chancellor George Osborne is set to warn there are no “miracle cures” for Britain as he looks for £5bn more cuts and signals austerity is here to stay.

As Chancellor George Osborne delivers his autumn statement on the economy and spending, we gather some alternative suggestions on to how to tackle the country’s fiscal woes.

The coalition’s economic plan has failed: now families are crying out for change. That’s the view of the shadow Chancellor Ed Balls, who’s warning the UK economy could face long term damage.

Taxpayer-owned RBS lost £1.5bn in the first half of the year after an IT meltdown and setting aside funds to compensate customers mis-sold financial products. It now faces fines for Libor rigging.

45 minutes of rapid-fire bogus computer trades cause Knight Capital’s shares to plunge by 75 per cent, and further undermines confidence in the ability of technology to drive stock markets.

The number of retailers to fall into insolvency rose to 426 in the second quarter of 2012, up from 386 in the previous year, according to a PricewaterhouseCoopers survey.

The committee investigating the Libor rate-fixing scandal questions Jerry del Missier, Barclays’ ex-chief operating officer, who reportedly earned £40m a year when the bank was rigging interest rates.

The Serious Fraud Office is investigating claims that banks rigged benchmark interest rates to boost their bonuses in a scandal that has already forced out three Barclays executives.

Spain’s downgrade to one level above junk has Europeans worried the country may need much more than the 100bn euros earmarked for its basketcase banks.

Britain’s blue-chip bosses saw their pay rise by by 10 per cent in 2011, while their staff earned just 1 per cent more. So why is Vince Cable watering down plans to control executive pay?

Spain will ask for an estimated 40-100bn euros from Europe to keep its banks operating – but it may not know the extent of the crisis until mid June when two audits are completed.

Spain partially nationalised banking giant Bankia SA after concerns about its real estate exposure in a scenario reminiscent of the Irish crisis following the 2008 implosion of Lehman Bros.

From Greece to France, from Britain to Italy, the message seems clear. Voters have had enough of the politics of austerity, enough of economic pain. But is there a realistic alternative?

Europe awoke to an unpredictable future after elections in France, Greece and EU hopeful Serbia – exactly the type of turmoil that spooks bond and currency traders who crave stability.