BusinessaHolic.com Latest Blog Posts

TeleCommunication Systems Invites Mobile World Congress Attendees to Discover the Latest in Secure Mobile Communication Technologies

Thu, 23 Feb 2012 11:29:45 GMT

ANNAPOLIS, MD, Feb 22, 2012 (MARKETWIRE via COMTEX) -- TeleCommunication Systems, Inc. (TCS) TSYS -2.45% , a world leader in highly reliable and secure mobile communication technology, today announced that the company will be featuring its market-leading wireless technologies at Mobile World Congress, which takes place February 27-March 1, 2012 in Barcelona, Spain. TCS invites attendees to stop by Hall 8, Booth 8C115 and experience "Connections that Matter(R)" through the company's broad range of location-based mobile applications and technologies, including:

Attendees will have the opportunity to see demonstrations of these innovations. TCS representatives will be on hand to answer any questions attendees may have.

About TeleCommunication Systems, Inc. TeleCommunication Systems, Inc. (TCS) TSYS -2.45% is a world leader in highly reliable and secure mobile communication technology. TCS infrastructure forms the foundation for market leading solutions in E9-1-1, text messaging, commercial location and deployable wireless communications. TCS is at the forefront of new mobile cloud computing services providing wireless applications for navigation, hyper-local search, asset tracking, social applications and telematics. Millions of consumers around the world use TCS wireless apps as a fundamental part of their daily lives. Government agencies utilize TCS' cyber security expertise, professional services, and highly secure deployable satellite solutions for mission-critical communications. Headquartered in Annapolis, MD, TCS maintains technical, service and sales offices around the world. To learn more about emerging and innovative wireless technologies, visit www.telecomsys.com .

Except for the historical information contained herein, this news release contains forward-looking statements as defined within Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. These statements are subject to risks and uncertainties and are based upon TCS' current expectations and assumptions that if incorrect would cause actual results to differ materially from those anticipated. Risks include without limitation those detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended December 31, 2010, and on Form 10-Q for the quarter ended September 30, 2011.

Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to update or revise the information in this press release, whether as a result of new information, future events or circumstances, or otherwise.

US airlines sue Exim Bank over AI loan

Tue, 21 Feb 2012 09:17:23 GMT

WASHINGTON: The US airline industry has sued the Export Import Bank (Exim) alleging that its financial support to Indian national carrier Air India, which itself is in deep red, will harm the American airlines.

In a revised complaint filed before a US court on Friday last week, the Air Transport Association of America, Delta Air Line and Air Line Pilots Association International, alleged that Exim Bank's decision to provide a loan guarantee of $3.4 billion to Air India, to help it buy 30 aircraft from Boeing, would badly affect several US airlines, the Delta in particular.

Arguing that without the financial support from Exim Bank, Air India, which in itself is in deep red, would not have purchased these aircraft and thus would deploy them on those routes where it gives a tough competition to US airlines. "The Bank's support for foreign carriers puts ATA's operator members, including Delta, at a competitive disadvantage because, among other things, the Bank's foreign beneficiaries have access to cheaper capital to finance their aircraft purchases," the complaint said.

China Banking Shares Rise on Reserve Ratio Cut: Hong Kong Mover

Mon, 20 Feb 2012 11:25:08 GMT

Feb. 20 (Bloomberg) -- Chinese banking shares climbed after the central bank reduced the proportion of deposits they must set aside, cutting the ratio for the second time in three months to fuel lending and sustain economic growth.

Industrial & Commercial Bank of China Ltd., the world’s largest lender by market value, rose 2 percent to HK$5.66 in Hong Kong as of 11:12 a.m. local time. China Construction Bank Corp., the second largest, gained 1.6 percent, while Bank of China Ltd. rose 0.9 percent.

The People’s Bank of China cut the reserve ratio requirement by half a percentage point starting Feb. 24, to spur lending as Europe’s debt crisis damps exports and the housing market cools. Standard Chartered Plc forecasts at least three more reductions this year, while HSBC Holdings Plc predicts a minimum of two.

“Banks, especially with low loan-to-deposit ratios and good capital, such as ICBC and CCB, will have more capacity to stimulate their loan growth,” Barclays Capital analysts led by May Yan wrote in a note yesterday. “A loosening liquidity environment could reduce NPL risks as an economic slowdown gradually unfolds in 2012.”

Non-performing loans at Chinese banks rose for the first time since late 2008 in the fourth quarter of last year, reaching 427.9 billion yuan ($68 billion) as of Dec. 31, while the bad-loan ratio climbed to 1 percent from 0.9 percent at the end of the third quarter, the China Banking Regulatory Commission said on Feb. 17.

GDP Slowdown

China’s gross domestic product grew 8.9 percent in the fourth quarter from a year earlier, the slowest pace since the first half of 2009. Exports and imports fell for the first time in two years in January and new lending was the lowest for that month in five years.

A 50 basis-point cut may add 400 billion yuan to the financial system, according to Australia & New Zealand Banking Group Ltd. After the latest move, the reserve requirement ratio stands at 20.5 percent for large banks and 18.5 percent for small and midsized financial institutions.

World Bank’s role

Fri, 17 Feb 2012 09:30:18 GMT

Robert Zoellick has been a steadying force at the World Bank since he took over in 2007, after the abrupt departure of Paul Wolfowitz in an ethics scandal. He has restored a sense of pride and shared mission in an institution created 68 years ago to promote growth and alleviate poverty in the developing world. He secured the first capital package for the Bank in 20 years. The challenge for Mr Zoellick’s successor is to build on his legacy to ensure the Bank remains relevant in a world which has changed radically since it was founded at Bretton Woods.

Today three-quarters of the world’s poor live in middle-income countries. Big developing economies such as India and Brazil can increasingly find what they need on global capital markets and are less inclined to suffer the constraints of World Bank lending. Aid will still be important to the poorest, but it is a far smaller financial challenge than before. This is a mark of success for the fight against poverty. Millions have been lifted out of destitution. But it also means that the World Bank’s focus must shift.

Rather than just looking for funds, many of the World Bank’s clients are now seeking guidance and expertise to develop knowledge in areas such as technology and procurement. Under Mr Zoellick, the Bank has taken the first step by making its databases publicly available. The initiative could be extended by reducing the Bank’s own reliance on US-based knowledge centres, to bring in experience learnt in other parts of the world.

A more flexible, collaborative approach to the knowledge it gathers will give the World Bank more tools to deal with fragile and volatile countries such as Somalia or Afghanistan, where the need to repair damaged states is greatest but the solutions are less obvious.

A new approach may also help to answer the growing complaints from the World Bank’s increasingly vociferous developing country shareholders, who resent the continued dominance over governance by western powers. It is to be regretted that Mr Zoellick’s departure will not lead to a truly open succession
contest. His replacement will be chosen according to the decades old stitch-up between the US and Europe that gives the job to an American.

Yet the World Bank’s developing country shareholders still have a voice. If the candidate is not seen to have the vision, intellect and drive to make the changes the bank needs, they should make those voices heard.

GEPL Capital`s view on bullions, base-metals, energy

Thu, 16 Feb 2012 09:06:57 GMT

GEPL Capital has come out with its report on bullions, base-metals and energy updates.

? Bullions
Gold fell after Moody's Investors Service cut the ratings of six European nations, strengthening the dollar and curbing demand for alternative investments. Spot gold dropped as much as 0.4 percent to $1,715.07 an ounce and traded at $1,715.88 at 12:34 p.m. in Singapore. Moody's cut the ratings of Italy, Spain, Portugal, Slovakia, Slovenia and Malta, and revised its outlook on the U.K.'s and France's top Aaa ratings to "negative" citing the region's debt crisis. That sent the euro lower against the dollar for a third day, and hurt other commodities including oil and copper.

Bullion for April delivery fell for a third day, dropping as much as 0.5 percent to $1,716.80 an ounce on the Comex in New York, before trading at $1,719.20. Silver for immediate delivery fell as much as 0.8 percent to $33.4625 an ounce, and last traded at $33.5975.

? Base- Metals
Copper declined for a third day after Moody's Investors Service cut the debt ratings of six European countries, damping the region's growth and demand outlook. Three-month copper fell 0.3 percent to $8,401.25 by 11:37 a.m. Shanghai time, after rising as much as 0.4 percent. The contract retreated 3.8 percent in the past two days. May- delivery copper on the Comex declined 0.4 percent to $3.83 a pound.
On the LME, aluminum was unchanged at $2,210 a ton. Zinc fell 0.9 percent to $2,057 a ton. Lead climbed 0.2 percent to $2,120 a ton, tin advanced 0.4 percent to $25,100 a ton, and nickel dropped 0.2 percent to $20,510 a ton. OAO GMK Norilsk Nickel, the world's largest producer of nickel and palladium, sees metals prices rising this quarter as investment demand rebounds.

? Energy
Oil climbed after the Greek parliament approved an austerity plan, bolstering chances for a solution to Europe's debt crisis, and on increasing concern that Iranian crude supplies will be disrupted. Futures rose as much as 2 percent and global equities advanced after passage of the package needed for 130 billion euros ($172 billion) in aid. Companies controlling more than 100 supertankers said they would stop loading cargoes from Iran, tightening sanctions on the second-biggest crude producer in the Organization of Petroleum Exporting Countries.

Crude oil for March delivery increased $1.61, or 1.6 percent, to $100.28 a barrel at 1:10 p.m. on the New York Mercantile Exchange. Futures are up 17 percent from a year ago. Brent oil for March settlement rose 65 cents, or 0.6 percent, to $117.96 a barrel on the London-based ICE Futures Europe exchange.

Banks and industrials lead rally for stocks after Greek cost-cutting; Apple tops $500 a share

Tue, 14 Feb 2012 12:58:56 GMT

Investors shook off their worries about Greece on Monday and got back to their routine of little-by-little gains. The Dow Jones industrial average climbed 73 points — nothing flashy, but enough to regain most of what it lost with an 89-point drop on Friday. Before that, stocks enjoyed a slow, steady climb this year.

Financial stocks led the Dow higher. Its biggest gainers were Bank of America, up 2.2 percent, and JPMorgan Chase, up 1.8 percent. Financial stocks have been the best performers in the market this year.

Apple crossed $500 per share for the first time, with a 1.9 percent rise to close at $502.60. The company jockeyed with Exxon Mobil last year for the title of most valuable by market value but now enjoys a wide lead, $468 billion to $400 billion.

The market’s gains were broad-based, with nine of 10 stock categories in the Standard & Poor’s 500 rising, led by industrial stocks. Utilities declined by a whisker. European stocks rose.

For once, investors had the Greek parliament to thank. On Sunday, it approved sharp cuts in civil service jobs, welfare and the minimum wage, required by international leaders for a $170 billion bailout that Greece must have to avoid defaulting on its debt.

Other details of the bailout still need to be finalized, though. And rioting while Greece’s parliament voted was a reminder that its financial problems are not solved. Germany also indicated it would take time before approving the bailout. The Greek debt deal amounts to a default because creditors will get less than they are owed, said Peter Cardillo, chief market economist for Rockwell Global Capital.

Still, “orderly default is better than a chaotic default, which would lean on the whole eurozone and the global economy as well,” he said, referring to the 17 countries that use the euro currency. Cardillo said market gains may be muted for a while because of the social unrest in Greece and because stocks have already risen this year. The Dow is up 5.4 percent, the S&P 7.5 percent.

The Dow closed up 72.81 points, or 0.6 percent, at 12,874.04. It’s 16 points shy of its highest close since the 2008 financial meltdown. The S&P rose 9.13 points, or 0.7 percent, to 1,351.77. The Nasdaq composite rose 27.51 points, or 1 percent, to 2,931.39.

Worries about the global economy and the state of the U.S. recovery pushed stocks around during the second half of 2011, said Ralph Fogel, a partner and investment strategist for wealth management and advisory firm Fogel Neale Partners in New York. . “The end of the world was coming,” or so traders thought, he said. “It wasn’t the end of the world. ... Then the market stopped listening.”

The Greek debt deal appeared to take some pressure off U.S. banks. Moody’s Investors Services said the $25 billion settlement between mortgage lenders and states over foreclosure practices is a negative for all five major banks involved. Still, most major banks, which have varying levels of exposure in Europe, gained on Monday. The euro fell a fraction of a penny against the dollar, to $1.32.

In Europe, the FTSE 100 in Britain rose 0.9 percent to 5,906. Germany’s DAX rose 0.7 percent to 6,738. The CAC-40 in France rose slightly to 3,385. In Athens, stocks rose 4.6 percent. In Asia, Japan’s Nikkei 225 closed 0.6 percent higher at 8,999, and Hong Kong’s Hang Seng gained 0.5 percent.

Investors were not ready to leave the haven of bonds in great numbers. Prices bounced between gains and losses as traders appeared skeptical that Greece was past its debt problem. The yield on the 10-year Treasury note was 1.98 percent, flat from Friday. Oil rose to $100.49 per barrel in New York. Gold rose slightly to $1,726.60 per ounce.

Among other stocks in the news:

— ATM maker Diebold Inc. rose 9 percent after it reported strong sales to banks, a sign they may be willing to spend more to upgrade their technology.

— Chesapeake Energy Corp. rose 2.4 percent after saying it will try to raise as much as $12 billion by selling assets to pay down debt.

— Regeneron Pharmaceuticals Inc. rose almost 12.3 percent after it said sales of its eye drug Eylea should reach $300 million, up from its previous forecast of $160 million.

— AmerisourceBergen Corp. fell 3.6 percent after the prescription drug distributor said its chief financial officer left to pursue other interests.

— The Madison Square Garden Co., following the winning streaks of the NHL’s Rangers and the NBA’s Knicks, rose 3.8 percent. “Linsanity,” the fervor over the Knicks’ surprise point guard, Jeremy Lin, should help revenue. Over five games, Lin is racking up an average of 27 points, or about four more than the Dow on a typical day this year.

Cheap Rooms Hotel or Motel Deal Reviews

Mon, 13 Feb 2012 09:40:31 GMT

Cheap Hotels : Cheap Hotels Motels Resorts Worldwide. If you are looking cheap rooms hotel or motel : Cheap Hotels Motels Resorts Worldwide. If you are looking and ready to get good, economical and affordable Cheap hotels, plan with us or book them online for maximum discount. We can assure it will be memorable journey for you and you would also like to plan all your next trips with us! We provide an informative and extensive list of cheap rooms hotel or motel that have several discount schemes for you and you will really enjoy your stay there. These Cheap hotels have quality and satisfaction as their hallmark and they will leave no stone unturned to make the visit for you a real delight and as comfortable as aught. The cheap rooms hotel or motel we have provided in our list makes all the areas of this beautiful city easily accessible.

You may share your Hotel Review here or search Cheap Rooms Hotel or Motel Deal Reviews Here. If you would like to check the hotel rate from all different hotel reservation websites, you don't have to do it one by one, you can search Multiple sites at once here:Compare Hotel Rate from 30 Hotel Travel Websites or Compare Hotel Flight Price from 140 Hotel Travel Websites! No magic, just a little more convenience for you.

Swiss banks seen as victims of own tradition

Sat, 11 Feb 2012 09:55:11 GMT

The banks had thought that they could always count on banking secrecy – a tradition that Switzerland still retains. Security, quality and trust… and banking secrecy. These are the qualities that have made the Swiss financial centre so successful. But it’s this very banking secrecy that is threatening the future of Swiss banks.

Eleven Swiss banks are under scrutiny by the US authorities for allegedly aiding tax evaders. An investigation launched in January helped bring down Switzerland’s oldest private bank, Wegelin. A hearing into the Wegelin case opened in New York on Friday, but – as had been widely expected - no-one from the bank or from its legal team showed up. The US side is now considering what its next moves will be. The bank is now legally considered a fugitive.

Other Swiss banks could face the same problem. “The US considers tax evasion a very serious crime. Don’t forget that [in 1931, gangster] Al Capone was convicted of and served a long sentence in prison for tax evasion and not for any of his other crimes,” said Robert Vogler, a banking historian.

Incomprehensible difference
But why do banks allegedly continue to support tax evasion? “They have in some way been blinded by tradition,” believes economic historian Tobias Straumann, For a long time the Swiss authorities have only given administrative assistance to other governments in cases of tax fraud but not evasion. It’s a subtle legal difference, incomprehensible for other countries, but one on which banking secrecy has long thrived.

“Swiss banks thought until now that Swiss legislation would be enough to defend their actions and that Switzerland was able to defend its own legislation. They thought that they were invincible, otherwise they would not have continued to violate other countries’ laws,” Straumann said.

Special case
Political leaders also believed this, firmly convinced of the Swiss “special case”– that banking secrecy would not be broken. “It’s not just the banks which have easily earned a lot of money thanks to banking secrecy, but also the authorities, which have eagerly banked massive tax revenues from the banking sector. Politicians therefore weren’t interested in asking too many questions,” Vogler underlined.

Straumann added: “what is surprising is that politicians, once the attacks became stronger, just threw in the towel and Swiss legislation no longer seemed to offer any refuge”. “The politicians have had enough of always getting the banks out of a tight spot,” he said.

Passive governments
Swiss banks also benefited from the long-standing passivity of foreign governments. “For decades it was a given that other countries’ laws weren’t respected and that the authorities in these countries didn’t get involved. The US law forbidding banks to consort with tax evaders dates from the 1930s, but until now there haven’t been any consequences,” Straumann said.

“The same thing happened in Europe. When Austria and Luxembourg strengthened their banking secrecy based on the Swiss model in 1979 and 1981 respectively, there was no reaction from other European countries. Perhaps because tax evasion had reached the upper political and economic echelons.”

Until the economic crisis, there had only been isolated attacks on banking secrecy. The European Union, the US and the Organisation for Economic Co-operation and Development (OECD) have now launched a concerted action against the practice. Big Swiss banks Credit Suisse and UBS have been in the Americans’ sights since 2008.

Grey area
The big banks have underestimated the strength of the US fight against tax evasion, Straumann said. “Some bosses realised what was happening but didn’t adopt the necessary extraordinary measures. They asked their employees to adapt to the new American regulations, but at the same time continued to reward the acquisition of new assets.”

UBS and CS have had to abandon their practices. Many US customers were instead taken on by Wegelin and other Swiss banks – which are now under US scrutiny. “Perhaps they told themselves: there is a new regulation, but if we are clever, we can find holes in it and be successful again. They thought that there would be another legal grey area, but even a grey area is very dangerous.”

Comprehensive accord
Swiss banks are now calling on the Swiss government to negotiate a deal with Washington. “We need to stop accusations against other banks, which would threaten the reputation of our financial centre. Therefore we are calling for a comprehensive accord to once and for all come to terms with the past,” said Rebeca Garcia, Swiss Bankers Association spokeswoman.

But does this mean Swiss banks want an end to banking secrecy? And could the Swiss financial centre continue to be as successful without it?

Vogler is convinced it can. “It wasn’t necessarily banking secrecy that encouraged many Europeans to deposit their money in Switzerland in recent years, but fears over the weakening of their own currencies and suspicion of their own banks and states,” he said. “Swiss banks represented above all a secure place where their savings maintained their value. And even today, in the euro crisis, the same phenomenon exists.”

Smoking May Hasten Mental Decline In Men: Study

Thu, 09 Feb 2012 09:22:26 GMT

The list of reasons to quit smoking just got longer. A new study published today on the website of the Archives of General Psychiatry has found that smoking appears to accelerate the pace of age-related cognitive decline in middle-aged men.

The mental function of the average 50-year-old male smoker can be expected to decline as quickly as that of a 60-year-old who has never smoked, the researchers estimate, even after factors such as educational level and overall health are taken into account.

"While we were aware that smoking is a risk factor for lung diseases, cancer, and cardiovascular disease, this study shows also its detrimental effect on cognitive aging," says lead author Severine Sabia, Ph.D., an epidemiologist at University College London, in the UK. "This detrimental effect is evident as soon as [age] 45."

And it's not just the pack-a-day crowd that needs to worry. So-called social smokers also put their brains at risk whenever they light up, the study suggests. "Intermittent smokers showed the same cognitive decline as persistent smokers, showing the importance of definitive smoking cessation," Sabia says.

Female smokers did not display similar declines, however -- an unexpected finding the researchers say may reflect gender differences in smoking and health patterns, rather than differences in how the brain responds to smoking.

"That is new and surprising," says Joseph Quinn, M.D., a neurologist at Oregon Health and Science University, in Portland, who was not involved in the new research. "While there are lots of possible explanations, all are speculative. But women are not off the hook."

Sabia and her colleagues analyzed data on 7,236 British civil servants who participated in a long-running health study known as Whitehall II. Over a 25-year period, the men and women periodically answered questions about their smoking habits: how old they were when they started to smoke; how much they smoked each day; and, if they'd quit, how long it had been since they kicked the habit.

Three times in 10 years, the same group also underwent a battery of tests designed to measure their short-term memory and their capacity to plan, organize, and pay attention (known as executive function). On average, the workers were 56 years old when they first took the brain tests.

Male smokers "showed a cognitive decline as fast as non-smokers 10 years older than them," Sabia says. There was some good news. Former smokers who had been off cigarettes for at least ten years showed no increase in cognitive decline compared to men who had never smoked.

"Anyone who stops smoking reduces their risk," Quinn says. One question the study can't answer is whether the cognitive decline the researchers measured can be linked to Alzheimer's disease and other forms of dementia, says David Teplow, Ph.D., interim director of the Mary S. Easton Center for Alzheimer's Research at UCLA, in Los Angeles.

"Are these people going to get diseases? That's what we want to know," Teplow says, adding that he hopes the researchers will continue to follow the study participants into old age, when a potential link between smoking and dementia would become apparent.

Previous research has identified smoking as a risk factor for dementia, but the extent of the association remains unclear, Sabia and her colleagues note. In the meantime, the study's message for smokers is clear: Quit now. "It is just that simple," Teplow says. "Live a healthy life, exercise, and eat a good diet. And a good diet means not inhaling cigarette smoke."

RBS chief Stephen Hester tells bank staff to prove critics wrong

Wed, 08 Feb 2012 09:45:01 GMT

Breaking his silence after the furore over his near £1m bonus and Fred Goodwin’s knighthood, Mr Hester emailed employees admitting that such political and media attention “makes the job harder”. Mr Hester waived his bonus last week following a wave of political and public anger. Two days later, his predecessor Mr Goodwin was stripped of his knighthood for his role in the bank’s collapse, which left it in need of a £45bn bailout.

“We can’t control the outside world – whether the economic environment or the political one,” Mr Hester said. “That’s not unique to us. But if ever something has been proven over our last three years of history, it’s this – we can successfully overcome great obstacles.

“There is no doubt that our position in the spotlight makes the job harder. But the best way to deal with it is to prove the critics wrong. To be purposeful, calm, and do our jobs to the best of our ability.”He acknowledged, however: “Many people within RBS and in the wider economies we serve are facing uncertainties around jobs, earnings, housing values… None of us, individually or RBS as a whole, exists in a vacuum. We do need to keep in mind that bigger picture.”

Mr Hester said RBS was still in a “loss-making phase” and urged staff to continue the clean-up that has so far cost £38bn. The bank gives a full-year update later this month. “Over the last three years we have generated over £33bn of pre-impairment profits from improving our core businesses. This has allowed us to afford to take the costs of 'clean-up’ from our risky inheritance, in loan losses, disposal costs and restructuring charges (£38bn so far),” he added. “We are ahead of schedule in that clean-up; in fact, we have been able to spend money and accelerate it as the outside environment got worse.”

News of the memo came as Chancellor George Osborne called for restraint in the row over City bonuses.
Speaking at the Federation of Small Businesses’ annual dinner on Tuesday night, he said: “A strong, free-market economy must be built on rewards for success. There are those who are trying to create an anti-business culture in Britain – and we have to stop them.”In a separate speech, Lord Levene, the former chairman of the Lloyd’s insurance market, warned large parts of British banking activities were “not relevant in the wider economy” and “create no value except for those involved”.

Lord Levene, who is now chairman of NBNK Investments, said banks must “provide services” rather than being merely “self-serving” if they want to stem political and public anger against them. In a speech to international bankers on Tuesday night, Lord Levene warned that an “industry which does not add value outside its own charmed circle cannot succeed.”

He said the current “banker bashing” was both confused and damaging. Referring to the outrage that led to Mr Hester giving up his bonus, Lord Levene criticised the “situation where a high-flier is brought in to help clear up the mess, seems to be making good progress and yet is thrown into almost the same category as his predecessor, simply because he is to be paid what was acknowledged at the time to be the going rate for a proven performer.”Lord Levene appeared to blame the arrival of US investment banks after Big Bang for the rapid growth of City pay.

He said: “I believe that it represented the import of a highly charged American-style of business overlaid on to a previously very conservative model of British banking, whose antecedents were then used to develop a new world of business producing rewards of unimaginable size.”In an internal letter on Tuesday, RBS’ chief executive broke his silence to speak of the impact on the part-nationalised lender of the recent political and media attention. Mr Hester waived his bonus last week following a wave of political and public anger. Two days later, his predecessor Mr Goodwin was stripped of his knighthood for his role in the bank’s collapse, which left it in need of a £45bn bailout.

"We can’t control the outside world - whether the economic environment or the political one," Mr Hester said. "That’s not unique to us. But if ever something has been proven over our last three years of history, it’s this - we can successfully overcome great obstacles.

"There is no doubt that our position in the spotlight makes the job harder. But the best way to deal with it is to prove the critics wrong. To be purposeful, calm, and do our jobs to the best of our ability."
He acknowledged, however: "Many people within RBS and in the wider economies we serve are facing uncertainties. around jobs, earnings, housing values... None of us, individually or RBS as a whole, exists in a vacuum. We do need to keep in mind that bigger picture."

Mr Hester said RBS was still in a "loss-making phase", referring to previous results. He urged staff to continue the clean-up that has so far cost £38bn. The bank gives a full-year update later this month.
"Over the last three years we have generated over £33bn of pre-impairment profits from improving our core businesses. This has allowed us to afford to take the costs of ‘clean up’ from our risky inheritance, in loan losses, disposal costs and restructuring charges (£38bn so far)," he added.

"We are ahead of schedule in that clean-up; in fact, we have been able to spend money and accelerate it as the outside environment got worse. RBS is a much safer company as a result."News of the memo came as Chancellor George Osborne called for restraint in the row over City bonuses. Speaking at the Federation of Small Business’ annual dinner on Tuesday night, he said: "A strong, free-market economy must be built on rewards for success. There are those who are trying to create an anti-business culture in Britain - and we have to stop them."

In a separate speech, Lord Levene, the former chairman of the Lloyd’s insurance market, warned large parts of British banking activities were "not relevant in the wider economy" and "create no value except for those involved".

Lord Levene, who is now chairman of NBNK Investments, said banks must “provide services” rather than being merely “self-serving” if they want to stem political and public anger against them.
In a speech to international bankers last night, Lord Levene warned that an “industry which does not add value outside its own charmed circle cannot succeed.”

He said the current “banker bashing” was both confused and damaging. Referring to the outrage that led to Mr Hester giving up his bonus, Lord Levene criticised the “situation where a high-flier is brought in to help clear up the mess, seems to be making good progress and yet is thrown into almost the same category as his predecessor, simply because he is to be paid what was acknowledged at the time to be the going rate for a proven performer.”

Lord Levene appeared to blame the arrival of US investment banks after Big Bang for the rapid growth of City pay. He said: “I believe that it represented the import of a highly charged American-style of business overlaid on to a previously very conservative model of British banking, whose antecedents were then used to develop a new world of business producing rewards of unimaginable size.”