Will Chief Executive of Barclays waive bonus?

In a statement that dates back to the hit single from Run DMC featuring Jason Nevins, Bob Diamond, the new chief executive of Barclays, told MPs this week that the time for "remorse" was over as he refused to say whether he would waive his bonus. Yes "Its like that and that's the way it is" was the music in the background as bankers and MPs' discussed theoretical questions about eyes of needles and how welcome would rich people be in heaven. Giving evidence to the Treasury Select Committee, Mr Diamond, who is reportedly in line for an £8m payout this year, said: "I will make that decision with my family." George Osborne said any bonus Mr Diamond received this year should be smaller than that paid to him in 2009. However, Mr Diamond, who took over from John Varley as boss of Barclays this year waived his bonus for the past two years so with a bonus of zero for 2009 it would suggest the chancellor would like the Mr Diamond to pay the bank some money back.

US banks quarter 4 profits

Banks in the States are poised to report higher quarterly profits after the release of billions of dollars in reserves set aside for bad loans. The fourth-quarter earnings season for the industry, is expected to show improving bottom lines from a year ago when many financial institutions were still grappling with mounting credit losses. Apart from the release of provisions for bad debts, loan balances increased during the last three months of 2010 after eight straight quarterly declines, according to Barclays Capital analysts. Yet as the worst of the financial crisis fades further, investors’ attention has turned. They increasingly are focusing on whether lenders are on track to meet new capital requirements, and how banks will boost revenue in the post-crisis era. "Incremental guidance on how banks plan to navigate the current challenges, including the low interest rate environment, slow loan growth and the negative effects of regulatory reform will be the focal points," wrote Moshe Orenbuch, an analyst with Credit Suisse.

Rising repossessions in the US

Repossessions in the US hit a record one million in 2010, with numbers increasing potentially in 2011. Foreclosure tracker RealtyTrac said about five million homeowners were at least two months behind on their mortgage payments. Foreclosures are likely to remain numerous while unemployment remains stubbornly high, the group said. Among the worst hit states were Nevada, Arizona, Florida and California, once at the heart of the housing boom. Nevada had the highest foreclosure rate for the fourth year in a row, with one in 11 housing units receiving a foreclosure notice, and RealtyTrac said more than half the nation's foreclosures occurred in Arizona, California, Florida, Illinois and Michigan. RealtyTrac said 2.9 million US households were subject to a foreclosure filing last year, up 1.67% from 2009. "2011 is going to be the peak," senior vice-president Rick Sharga told the Associated Press news agency. Foreclosures slowed toward the end of 2010 amid revelations that banks had based the proceedings on improper documentation, but the pace is likely to rebound in the first quarter of 2011, Mr Sharga said.