The Wall Street Journal-20080117-EuroLinks Daily View- Bank Watchdogs Lack Bite- Online edition
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EuroLinks Daily View: Bank Watchdogs Lack Bite; Online edition
As the credit turmoil puts increasing pressure on European banks and financial markets, Europe's policy makers acknowledge they aren't equipped to deal with a global crisis. One of the reasons the banks were so ill-prepared was because they didn't have a grip on events beyond their own borders, which is a problem because most big banks operate globally.
As Alistair MacDonald reports, mounting mortgage losses and a poor outlook for banks are pushing some to look for ways to improve the early warning system of a crisis and to figure out how to coordinate in the event of a disaster. Unfortunately, it's not clear that a plan will be crafted.
At a meeting in Paris on Thursday, U.K. finance minister Alistair Darling called on his counterparts from Germany, France and Italy to get the International Monetary Fund and Financial Stability Forum regulators and treasury departments, to create an early-warning system and map out financial links between countries and their potential risks. He hopes to have full backing for the idea before a meeting of finance ministers from the Group of Seven leading nations next month.
Read our report on global banking woes: http://online.wsj.com/article/SB120059632554698297.html
Read a report from Susanne Craig, David Reilly and Randall Smith on Merrill Lynch's huge loss: http://online.wsj.com/article/SB120056782485697411.html
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BREWERS UP SCOTTISH & NEWCASTLE BID: Carlsberg AS and Heineken NV have coaxed Scottish & Newcastle PLC to the bidding table with a $15.31 billion offer. This is the consortium's fourth offer, and its success could put an end to the long takeover battle that focused on a Russian venture between Denmark-based Carlsberg and U.K.-based S&N.
In December a U.K. regulator ordered the consortium to make a formal offer for S&N by Jan. 21 or to walk away. The deadline had been extended to Jan. 24.
Our Victoria Howley and Michael Carolan report that the three companies said there is no certainty a formal offer will be made. This 800-pence-a share offer is up from the consortium's first offer of 720 pence a share in October.
Read our report on the future of S&N: http://online.wsj.com/article/SB120059765012498351.html
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BROWN WANTS STRONGER TIES TO CHINA: U.K. Prime Minister Gordon Brown wants to strengthen the U.K.'s business relations with China. Mr. Brown was set to land in China Friday morning, but his departure was delayed.
The European Union has become China's top trading partner, which has led to a slew of visits from European leaders. But business relations are sensitive between these two markets. European politicians worry about the yuan's depreciation against the Euro, and China canceled a November visit by German Finance Minister Peer Steinbruck after Chancellor Angela Merkel met with Tibetan spiritual leader the Dalai Lama in October.
Our Andrew Peaple and Laurence Norman report that Mr. Brown wants to press China for deeper commercial ties between the two countries, and believes a strong relationship would be mutually beneficial.
Read our report about China's business ties with the U.K. and what both countries stand to gain and lose: http://online.wsj.com/article/SB120059502709798169.html
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WHY WE NEED OUR SLEEP: Don't get your recommended eight hours of sleep a night? It could be costing you brain power. Not to mention that you are less able to make sense of problems, make competent moral judgments or retain what you learn.
Read Robert Lee Hotz's report on the why your cat's sleeping example could be beneficial to you: http://online.wsj.com/article/SB120059164111398073.html
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WORLD BANK PURGE: Our editorial writers discuss the resignation of Suzanne Rich Folsom.
Read more: http://online.wsj.com/article/SB120034953863589551.html
