Dow Jones Newswires reports that Barclays President Bob Diamond has issued a stark warning to the bank's staff.
Speaking at the Council on Foreign Relations in New York Monday, Diamond said: 'If anyone based a decision on risk on a rating agency, they're fire. The model doesn't work for me. I don't get the conflict of interest'.
In the meantime, Citi's decision to repay its $20bn in remaining bailout money received the tacit approval of stockholders Monday. The firm's decision to issue additional stock to help pay back the US taxpayer will result in a 20% dilution for shareholders, yet the stock only fell some 6% in trading Monday. As the smart money says, Citi is either a '0' or a '$20' stock going forward, and many stockholders feel that the firm will perform better without interference from the US government.
And The New York Post is reporting that the repayment of Citi's bailout looks like generating a $13bn return for the US taxpayer. One man certainly not selling his Citi shares is Prince Walid Bin Talal, who confirmed Monday that he is sticking with his investment and said that he thought repaying the bailout was the right thing to do.
The New York Times reports that Wells Fargo is to repay its $25bn TARP borrowing, and is to raise $10.4bn in a stock offering to help it do so. The newspaper quotes David Ellison, a portfolio manager at FBR, who said: 'The stigma of TARP is becoming such an emotional, testosterone-driven thing, that they want to be done with the government. If Bank of America, if Citigroup can do it, then why not me too ?'.
Finally, The Daily Telegraph reports that the EU has now given its support to the UK government's support and restructuring plan for Royal Bank of Scotland. According to the newspaper, the government subsidy, which could reach $162bn, is the biggest in the 52 years of EU competition policy.