BMW to sell luxury cars for less online

The BMW i3 concept car at the 2012 Detroit Auto Show in January. (John T. Greilick / Detroit News)

BMW will sell cars over the Web for the first time as the world's largest maker of luxury vehicles seeks an inexpensive way to reach more buyers to recoup spending on its electric models.

A direct online sales platform for BMW's new I sub-brand will be unique in an industry where, outside of small-scale experiments, competitors leave Internet orders for cars to dealers. BMW's range of strategies for the models, including a roaming sales force backing a limited showroom network, reflects the challenge carmakers face as low-emission vehicles trickle into dealerships to sluggish demand after years of development.

"There is considerable risk in BMW's approach of promoting the I brand so prominently," said Stefan Bratzel, director of the Center of Automotive Management at the University of Applied Science in Bergisch Gladbach, Germany. "There is the image risk, if they don't succeed as quickly as expected, and then there's the main risk of costs, which can only be countered with high deliveries."

BMW opened the I models' first showroom Tuesday in London, although only prototype cars and informational materials will be displayed at first because the vehicles themselves won't go on sale before next year. BMW is spending about $3 billion developing the i3 battery-powered city car and i8 plug-in hybrid supercar, according to an estimate by Frost & Sullivan. Industry sales of electric cars last year, at 43,000 vehicles, were only 57 percent of the 75,000 deliveries predicted by Sarwant Singh, a London-based automotive partner at the consulting company.

Starting prices posted

The four-seat i3, scheduled to reach the market in late 2013, will be priced at about 40,000 euros ($48,500), Bratzel estimated. That compares with a 23,850-euro starting price ($29,388) in Germany for the 1-Series, the cheapest BMW-brand car. The i8, targeted for sale in 2014, will cost more than 100,000 euros ($123,221), according to Ian Robertson, BMW's sales chief.

Details of how I-model buyers, the website and dealerships will interact are "still in the planning process" and will be communicated later, Linda Croissant, a spokeswoman at Munich- based BMW, said last week. Sales will be focused on the world's major urban areas, she said.

The online sales option is aimed at a generation of drivers used to making daily purchases over the Internet, and will be an extension of the car configuration that most automakers offer customers to view models with desired options such as interior colors, seat materials and roof styles.

Test drives not an option

The Internet platform may take a while to catch on because "many customers will still want to go somewhere to look at and drive the vehicle before buying," said Ian Fletcher, an auto analyst in London at research company IHS Global Insight.

"With new technologies, there may be even greater skepticism about buying a car over the Internet, as in many cases you'll have to win the confidence of customers that it works and there is support for them," Fletcher said in an email.

The setup may help BMW reduce expenses: Internet sales require less than half the cost of distributing through a dealership, according to Ferdinand Dudenhoeffer of the Center Automotive Research at the University of Duisburg-Essen in Germany. That allows online car prices to be 5 percent to 7 percent less than showroom tags.

Still, BMW sees standard dealerships as "the backbone of what we are doing in the interface with the customer" for the I models, Robertson said in June at a press presentation at the sub-brand's Park Lane showroom in London.

Dealer selection criteria

Outlets will be restricted to dealers with high BMW-brand sales volume who have floor space as well as capacity to work with I models' powering technology and carbon-fiber body material, Robertson said. The carmaker has chosen 45 of its approximately 200 dealers in Germany to sell the i3 and i8, a ratio that will probably be similar elsewhere, he said.

Dealers will be designated as agents for the I models, which provides an "advantage" by keeping the vehicles on the carmaker's books, the association of BMW distributors in Germany said in an email.

Electric vehicles' disadvantages versus conventional cars include costly battery packs, limited ranges and the time needed to recharge. Consumer reception to models like the Nissan Motor Co.'s Leaf and General Motors Co.'s Chevrolet Volt has been tepid.

"Currently available electric cars have a limited market success because they are a big compromise," said Arndt Ellinghorst, a London-based analyst at Credit Suisse AG. "Customers are not willing to compromise and spend a lot of money."

Carbon fiber bodies lighter

BMW Chief Executive Officer Norbert Reithofer started Project I at the end of 2007 as tighter emissions regulations threatened the viability of sporty sedans. BMW chose to create all-new vehicles that use expensive carbon fiber for a lighter body to make up for the weight of the battery system.

The approach contrasts with a decision by Daimler AG's Mercedes-Benz Cars division to convert existing models, such as the van-like B-Class or two-seat Smart, to electric power.

To make its electric vehicles more attractive, Stuttgart, Germany-based Daimler's Smart brand offers to lease the battery separately from the car. The automaker has a target of selling more than 10,000 of the models next year, with a starting price of 18,910 euros plus monthly battery rental at 65 euros.

The I models' new technology poses risks for BMW, "but they have no choice if they want to keep their premium and image as an innovation leader," Ellinghorst said.

The i3 and i8 will probably be among BMW's lowest-selling models through 2024, alongside the existing Z4 roadster, according to IHS estimates. In 2014, the first full year of production, BMW will probably deliver 31,380 i3s, compared with 564,760 of the best-selling 3-Series model and 18,101 Z4s, a study by the research company shows.

BMW's stance is that the models should produce earnings from the start, sales chief Robertson said.

"We clearly, as a company, go into any product launch with the view of making profit, which is no different with the I brand," Robertson said. "This is a car line just as every other car line, and we intend to make profit from Day 1."

Asil Nadir 'hid Polly Peck theft' behind success

Former Polly Peck tycoon Asil Nadir hid multi-million pound theft behind the success of his international company, the Old Bailey has been told. Philip Shears QC, prosecuting, told the jury that Mr Nadir's massive success had been a smokescreen for the thefts. Asil Nadir, 71, faces 13 counts of theft of £34m from Polly Peck International between 1987 and 1990. He denies the charges. The judge is expected to ask the jury to consider their verdicts next week. Mr Nadir is accused of stealing up to £150m from his company, Polly Peck International (PPI), to benefit himself, his family and other associates. The trial is focused on sample charges relating to just over a quarter of the money that allegedly disappeared. Prosecutors say Mr Nadir funnelled cash away from PPI through a complex series of international transactions, including through a bank he owned in northern Cyprus. Mr Nadir denies the charges and says legitimate withdrawals to circulate cash around the business were matched by desposits at the northern Cyprus end of the operation. Continue reading the main story Chronology 1980 - Asil Nadir buys Polly Peck, at the time a small textile firm 1989 - Polly Peck International, by now worth £2bn, acquires giant fruit company Del Monte 24 Oct 1990 - PPI goes into administration Dec 1990 - Mr Nadir is charged with embezzling money May 1993 - He flees to northern Cyprus Aug 2010 - Mr Nadir returns to the UK Mr Shears said the trial had featured a lot about how Mr Nadir built the PPI empire and wielded considerable power and influence. "I wonder if some of you might have thought that what was happening here is that he is hiding behind the success story of Polly Peck, hiding behind the unpleasant reality that in the end he was found out, found out for stealing," said Mr Shears. "We invite you to conclude there is a wealth of evidence to show Mr Nadir stole very large sums of money from PPI." Mr Shears said that the businessman took cash to support share dealing, to pay debts and also the taxman. But he had also taken cash from PPI to buy racehorses, antique marble fireplaces, jewellery and shares in newspaper and video companies. Prosecutors say other large payments were made for a farm, property in London and to cover the losses of his other enterprises. Mr Shears said that Mr Nadir's attitude under cross-examination had been very revealing and that he was a man who was "adept at blaming others". "You may think he is a man who perhaps is used to getting his own way," Mr Shears said. "A man who likes to be in control. A man who has time and time again failed to give a straight answer to a straight question. "A man who - it is a matter for you - often descended into long rambling answers almost as if to produce a smokescreen to hide from the thrust of a particular question. "We submit to you this is a case of theft on a very substantial scale over what you might think was quite a significant time." Counsel for the defence will give their closing speech to the jury next week.

Barclays has admitted the public’s trust in banks has “been decimated and needs to be rebuilt” as it set out measures aimed at rebuilding its reputation in the wake of Libor rigging.

Announcing the appointment of veteran lawyer-turned-banker Anthony Salz to lead a review of its operations, Britain’s second-largest lender on Tuesday said the scandal that saw chief executive Bob Diamond and chairman Marcus Agius resign showed “banks need to revisit fundamentally the basis on which they operate, and how they add value to society”. Describing the “daunting” task ahead of it, Barclays said it needed a culture change that would see it “affirming key values” with “reinforcing mechanisms” to ensure staff behaved appropriately. Alluding to management and pay, it added “visible leadership” and rewards would have to be aligned to these values. The review will see Mr Salz interview investors, regulators and staff over the coming months and his findings are expected to be published in the spring. Barclays said it planned to implement the findings of the Salz Review in full. “Barclays has a real opportunity to use the events of the past weeks to drive a change in its values and practices. I look forward to hearing views on the changes that should be made,” Mr Salz said. “I hope that this review will significantly assist Barclays in rebuilding trust and reaffirming its position as one of our leading institutions.”

Banks 'Face £27bn Libor Hit'

The banks under investigation in the Libor rate-fixing scandal face combined losses of up to $42bn (£27bn), far more than previous estimates, according to one of the City's leading equity research houses. I have obtained a confidential note sent to clients by Autonomous Research today which suggests that 16 banks face a financial hit that would potentially alter the economics of investing in the global banking sector. In its note, Autonomous (which is chaired by the former City minister, Lord Myners) warns that if Libor was under-reported (in other words, that banks' submissions were too low) by 2.2 basis points, it could trigger fines and litigation costs of as much as £27bn. "We estimate $37bn of potential damages for rates derivatives (across all currencies)... We estimate adding bank loan and money market fund lawsuits could add a further 14%, or $5bn to the overall damages, bringing the possible total to $42bn," its note said. To be clear, the figures are at this stage pure conjecture, and Autonomous points out that they "must be used with great care and read in conjunction with a very long list of caveats". Nonetheless, the fact that such a respected research team as that of Autonomous is depicting such a cataclysmic financial scenario points to the grave crisis facing the international banking sector. It does not make pretty reading for investors in UK banks, with the analysts pointing to a prospective cost of £6.9bn for Barclays, HSBC, Lloyds Banking Group and Royal Bank of Scotland. Last week, Morgan Stanley attracted headlines with a note forecasting losses for 12 banks running to $22bn (£14.1bn) Libor is the benchmark for hundreds of trillions of pounds-worth of derivatives, loans and mortgages, and is now the subject of formal inquiries by the Government, the European Commission and regulators in several countries. Barclays is so far the only bank to have settled with authorities over Libor-fixing. It was fined £290m by regulators in the UK and US, a relatively modest sum in the context of what analysts now believe may be the final bill facing it and other banks. The estimates are so vast because of the tsunami of shareholder litigation that is expected to flow from the scandal as well as the prospect of tighter regulation that could restrict banks' profits. Barclays, of course, will not be immune to this, so it's conceivable that its own financial hit will ultimately be much larger than the £290m in fines. The Automonous analysts pick Barclays, Citi, Royal Bank of Scotland and UBS as having the largest exposure to legal costs although they add that "we believe it is both premature and inappropriate to focus on individual banks at this early stage in the process. As more evidence comes to light, perceptions of alleged manipulation and/or collusion could change dramatically". Barclays' executive committee hinted at the scale of the impact on the wider industry in a memo to staff on Friday. Referring to the litigation risk facing the banks under investigation, which also include Deutsche Bank, Autonomous says that "given the regulatory and political furore over the Libor allegations, we find it hard to believe this case will be easily dismissed by the defendant banks". On Monday, Jerry del Missier, the former Barclays executive who passed an instruction to the bank's Libor-setters to falsify its submissions, will give evidence on the scandal to the Treasury Select Committee.

J.P. Morgan 'Whale' Report Signals Deeper Problem

J.P. Morgan Chase JPM +5.96% & Co. said traders appear to have hidden problems in a portfolio whose losses have ballooned to $5.8 billion, the latest twist in an episode that has tested the reputation of Chief Executive James Dimon as one of Wall Street's soundest risk managers. A review of roughly 1 million e-mails and tens of thousands of voice tapes suggests traders within the once-obscure Chief Investment Office "may have been seeking to avoid showing the full amount of losses" during the first quarter by placing inaccurate prices on their positions, the bank said Friday. One trader, nicknamed the "London whale," may have been pressured by a boss to mark positions more aggressively, people close to the investigation said. WSJ's David Reilly pulls up a chair on Mean Street and discusses the idea that despite J.P. Morgan's Q2 loss announced on Friday, should CEO Jamie Dimon be seen as a hero? Photo: Getty Images. The discovery, made in recent days, prompted the company to restate earnings for the first quarter and admit to a "material weakness" within a unit that manages the bank's excess cash—embarrassments for J.P. Morgan, long considered one of the best-managed U.S. banks. Timeline: Tracking Trading at CIO View Interactive "This has shaken our company to the core," Mr. Dimon told analysts and investors Friday. Recap: The J.P. Morgan Call 'Maximum' Clawbacks Sought Deal Journal: Three Key Results Tracking the Trade: New 'Whale' Revelations Heard on the Street: J.P. Morgan's Cookie-Jar Quarter The largest U.S. bank tried to demonstrate Friday that the worst of the problem was in the rear-view mirror, reporting a $4.96 billion profit for the second quarter, down 8.7% from a year ago. The New York company said the results reflect solid performances in its retail, investment-banking and mortgage units. Second-quarter mortgage-loan originations jumped 29% from a year ago to $43.9 billion, while credit-card sales volume rose 12% from a year earlier to $96 billion. The company's investment bank was ranked first globally in fees. Enlarge Image Associated Press J.P. Morgan Chase CEO James Dimon enters the company headquarters Friday. The bank also cited an overhaul in personnel and risk controls within the Chief Investment Office, and announced that compensation would be clawed back from former CIO head Ina Drew and three London managers involved in the bad bets, without giving a total. Ms. Drew declined to comment. "It's time to move forward," Matt Zames, the new head of the CIO, said in a memo to employees. Investors reacted positively, pushing up shares of the bank $2.03, or 6%, to $36.07. Following J.P. Morgan's earnings call and details of their $5.8 billion loss, will investors be too jittery to invest in the stock in the long term? David Benoit reports on Markets Hub. (Photo: Mark Wilson/Getty Images) But it could take longer for J.P. Morgan Chase to lastingly convince investors that any risk-management weaknesses have been fixed and the losses are under control. The trading losses are far larger than the $2 billion to $3 billion of losses that the company two months ago said could result from the bungled trades; the $5.8 billion total is through Thursday. Chief Financial Officer Doug Braunstein said Friday that the troubled positions could still lead to additional losses of $700 million to $1.7 billion. Eight agencies are conducting probes into the losses, including the Justice Department and the Securities and Exchange Commission. Now Reporting Track the performances of 150 companies as they report and compare their results with analysts' estimates. Sort by date and industry. More photos and interactive graphics In addition, the second-quarter profit was boosted by one-time gains that won't likely recur in coming quarters, and revenue tumbled 17% from a year earlier. Overall, J.P. Morgan has lost $18 billion in market value since it shocked Wall Street on May 10 with the existence of trading losses. J.P. Morgan's assurances on Friday don't "eliminate the concern that this accident could be a predictor of future accidents," said Mike Mayo, a banking analyst with CLSA. "Maybe they are higher risk than we thought before. There is a nagging overhang that we might not know everything that we should know." The bank has been probing the losses for two months. But it was only in recent days that the bank became convinced that traders may have done more than make trading mistakes, according to two people close to the investigation. The company's report didn't name the traders, but one of the turning points came in an interview with one of them, Bruno Iksil, known as the London whale for his large trades, the people said. As part of its investigation, the bank said it "has recently identified concerns around the integrity of traders' marks," or the values placed on the traders' positions. The bank said "emails, voice tapes and other documents, supplemented by interviews, [are] suggestive of trader intent not to mark positions where they believed they could execute." The London Whale Claw Is Out for 'Whale' Officials July 11, 2012 J.P. Morgan plans to reclaim millions of dollars in stock from executives who were at the center of the bank's costly trading blunder. Dimon on the Hill: Cool and Contrite June 13, 2012 J.P. Morgan's chief, tarnished by trading losses, remains steadfast before Senate Banking Committee J.P. Morgan Knew of Risks June 12, 2012 Warning flags were raised two years ago about the trading desk that lost $2 billion. Inside J.P. Morgan's Blunder May 18, 2012 A behind-the-scenes account reveals that CEO Dimon blessed the concept behind the trads that cost the bank billions and stunned Wall Street. Bruno Iksil: From 'Caveman' to Whale May 17, 2012 Last year, J.P. Morgan's Iksil wagered large and won, but in 2012, his bets soured. J.P. Morgan's $2 Billion Blunder May 11, 2012 The nation's second-largest bank by assets admits losses on a massive trading bet gone wrong, a mistake CEO James Dimon calls "egregious" and "self-inflicted." The Original WSJ Article: 'London Whale' Rattles Debt Market April 6, 2012 The credit markets have been buzzing about the identity of a deep-pocketed trader dubbed 'the London Whale,' and some investors are placing heavy bets against him. How the London Whale story unfolded The two people close to the investigation say investigators didn't find a smoking gun suggesting potential malfeasance. But the evidence "painted a picture that made us uncomfortable," one of them said. Mr. Iksil received pressure from a boss to be more aggressive about certain valuations within an accepted range, one of the people said. Mr. Iksil's lawyer said his client "has done nothing wrong and will be exonerated." On Friday, executives offered the most detailed account to date of how the losses happened, attributing the fiasco to a combination of complacency, poor judgment and faulty risk controls. The portfolio—which featured outsize bets on certain corporate credit indexes—generated about $2 billion of profit from 2007 to 2011. Traders were asked in late 2011 to reduce the positions and instead put on other trades that increased the size of overall portfolio. The bank also singled out risk management within the Chief Investment Office for being "ineffective" and having "failed to meet expectations." Risk managers should have addressed the office's inadequate risk limits more quickly, challenged the office's leaders more forcefully and escalated more problems to management. The person who was named chief risk officer for the unit in late Janaury, Irv Goldman, has resigned from the bank, said a person familiar with the situation. Mr. Goldman couldn't be reached for comment. In January, certain risk limits within the office were breached, and yet in February Ms. Drew said in a presentation to Mr. Dimon and other senior officers that the reduction plan was on track. The office breached certain risk limits again in March, losses increased and Ms. Drew asked her traders to stop trading on March 23. After The Wall Street Journal reported the existence of the trades on April 5, Mr. Dimon asked for a review of the troubled portfolio. Ms. Drew told Mr. Dimon that the positions were likely to lose as much as $250 million in the second quarter and possibly even gain $350 million. A more extreme scenario called for losses two or three times as large as $250 million, said a person close to the investigation, but Messrs. Dimon and Braunstein were given "multiple assurances" that the position was manageable. On April 13 Mr. Dimon told investors that concerns about the trades were a "complete tempest in a teapot." On Friday, Mr. Dimon admitted that "we shot ourselves in the foot."

Mobile operator O2 hit by nationwide network failure that left users unable to make calls or text

The O2 mobile phone network crashed tonight leaving thousands of customers across the country cut off. Users were left stranded, unable to make or receive calls or send texts, as the firm - which has 23 million customers in the UK - said it did not know when the problem would be fixed. Some customers also had no internet access. O2, Britain's second-largest mobile phone operator, admitted it was unclear exactly how many people had been affected. It said ‘thousands’ may be experiencing problems. The problems began this afternoon for some mobile users, the network said. O2 are urging customers to check their Twitter and Facebook feeds for updates - but the company’s webpage which displays live information about network coverage crashed. A spokeswoman said the problem was not 'location-specific'. ‘The problem is an issue within part of our core network that is preventing some mobile phones from successfully connecting,' she said. ‘The problem is not location-specific. All possible resources across our and our suppliers’ engineering teams are being deployed to restore service as soon as possible.’ Thousands of angry customers took to Twitter to complain. BBC television presenter Huw Edwards (@huwbbc), tweeted: ‘6 hours of non-service and counting, simply not good enough, O2.’ One Twitter user, Kelly Jones (@kelly-92), tweeted: ‘Having a phone that hardly works usually is annoying, but this whole no signal on o2 all afternoon is beyond irritating.’

Bankers face the prospect of jail as Serious Fraud Office launches criminal probe into interest-rate fixing at Barclays

Hearing: Former chief executive Bob Diamond left Barclays over the matter, before appearing before MPs this week

A criminal investigation has been launched into alleged rigging of the Libor rate within the banking industry, the Serious Fraud Office (SFO) confirmed today.

SFO director David Green QC formally accepted the Libor issue for investigation after Barclays was fined by the Financial Services Authority (FSA) last week for manipulating the key interbank lending rate which affects mortgages and loans.

The claims ultimately led to the resignation of Barclays boss Bob Diamond and have become the focal point of a fierce political debate over ethics in the banking sector.

The investigation could ultimately lead to criminal prosecutions and bankers facing charges in court.

The SFO's update came after it revealed earlier this week that it had been working closely with the FSA during its investigation and would consider the potential for criminal prosecutions.

The Government department, which is responsible for investigating and prosecuting serious and complex fraud, said on Monday the issues surrounding Libor were "complex" and that assessing the evidence would take time.

Under fire: Barclays former chairman Marcus Agius (right) with former CEO Bob Diamond (centre), and former chief executive John Varley (left)

As the SFO prepares its investigation, Labour leader Ed Miliband continued to push for an independent inquiry into the banking scandal despite MPs rejecting the demands.

The Labour leader said that while the party would cooperate with a parliamentary investigation, its remit was too "narrow" and a judge-led probe was still needed.

Mr Miliband also defended the conduct of Ed Balls after the shadow chancellor engaged in a bitter war of words with his opposite number George Osborne in the Commons.

 

 

A British photographer's adorable images of puppies, ducklings and even kittens in hammocks will brighten up any rainy day.

Master of cuteness Mark Taylor's images are in demand all over the world for the purr-fect way they capture a softer side to our best-loved animals.

His photographs are a legacy from his late mother Jane Burton who pioneered the style so familiar on calendars in offices and maths teacher classrooms everywhere.

Fosset the kitten with a yellow gosling: Photographer Mark Taylor is famous around the world for his cute shots of animals in unusual poses

Fosset cuddles up to his gosling friend: Mr Taylor's photographs are a legacy from his late mother Jane Burton who pioneered the style

 

Stanley the kitten with a duckling: Despite the menacing look in Stanley's eyes, Mr Taylor has never had any incidents where one subject ate another

Using a simple clean white background and some unusual animal pairings Mr Taylor's style has seen him make the cover of prestigious wildlife magazine National Geographic.

In this set of heart-warming images Mr Taylor shows why he's one of the best in his field tapping into that desire in us all to see something fluffy.

 

More...

• Women cat owners are 'more likely to kill themselves' due to higher chance of infection with parasite found in feline faeces

 

From ducklings with puppies, to dogs with kittens and even rabbits Mark captures them all on camera as if they were the best and friends.

And thankfully so far he's had no case of any of them eating each other.

Hear me roar: Kittens Stanley and Fosset have a cuddle

 

Guess who! Stanley holds his paws over Fosset's face as they play

 

King of the castle: Stanley climbs on top of Fosset

 

Not just for Christmas: Stanley and Fosset pose inside a gift box

Touch on that: Stanley offers his paw for a fist bump. Right, he poses with a bright red flower

 

Oh you! Stanley gestures towards the camera as he lies in a hammock

 

Time for a cat nap: Stanley and Fosset enjoy a snooze

Keeping it in the family: Mr Taylor's daughter Siena, pictured with Stanley, helps to pose the animals for her father's photo shoots

Mr Taylor, 47, creates his images all at his home studio Warren Photographic, in Guildford, Surrey.

His father Kim is a world-renowned wildlife photographer. His mother Jane, who died in 2007 after a brave battle against cancer, was one of the first to use a unique style now so well adopted by her son.

Mr Taylor, a father of one, said: 'There have been a few close shaves when we have put the different animals together, but we often "introduce" the animals to a rabbit in a cage first to gauge the reaction.

'If the dog starts licking its lips we know it might not work out well, and for example it's best not to put a Jack Russell next to a rabbit.

'I have helpers in the studio and some of the animals extras we have here, for example we have six rabbits, but others we have to bring in.

'The key to the photograph is making sure the animals are not doing anything they don't want to do because I think you can tell if they are not enjoying themselves.

'My mother was a pioneer if you like of this idea of using the clean white backgrounds and I like to think I am carrying on her legacy.'

You wanna start something? Stanley goes nose to nose with a Bichon Fris

 

My big mate: Stanley nuzzles up with Great Dane pup Tia

 

Where u go? Stanley and Tia have a play

Keeping it in the family Mr Taylor's daughter Siena, 10, is also on hand to pose up with the animals in the pictures.

Mr Taylor, who uses a Cannon 1DS Mark III camera, said that he felt his photographs were so popular because they tap into an desire in us all to relate to animals.

He said: 'I think the fascinating aspect of this type of photography is that it taps into something in us all that sees ourselves and human emotions in our pets and other animals.'

Ulster Bank customers still locked out of accounts by RBS IT crisis

The problems, initially dismissed as a glitch, have almost completely been cleared up at the main RBS and NatWest banks after a ten-day struggle. But there appears little end in sight for the crisis at its sister bank, Ulster. Businesses and individuals in Northern Ireland have complained about the difficulties of running out of cash and being treated like “second-class citizens”. The Belfast-based bank, which also has branches in the Irish Republic, has 1.9m customers, with an estimated 100,000 unable to access their money. The chairman of RBS, Sir Philip Hampton flew to Belfast in an attempt to mollify angry customers. He said what had happened was “completely unacceptable” and staff were working “flat-out” to clear the backlog. Sir Philip added said the computer failures “should never have happened”.

Bank inquiry launched after Libor rate-rigging scandal

Prime Minister David Cameron has announced a full parliamentary inquiry of the banking sector following the Barclays rate-rigging furore. He told the House of Commons the manipulation of the Libor interest rates had been a "scandal". The review will run alongside a narrower inquiry specifically into the Libor market, also announced on Monday. The comments follow news the Serious Fraud Office is considering whether to bring criminal charges. In addition, Barclays will conduct its own "root and branch review" after receiving a fine of £290m ($450m) over the Libor affair. Mr Cameron said the full parliamentary committee of inquiry would be headed by the chairman of the Treasury Committee, Andrew Tyrie. "This committee will be able to take evidence under oath, it will have full access to papers and officials and ministers including ministers and special advisers from the last government," he said. Mr Cameron said the review should ensure the UK had the "toughest and most transparent rules of any major financial sector". He added: "Bankers who have acted improperly should be punished," and it was important to learn the lessons of the affair. But Labour leader Ed Miliband said the review did not go far enough, calling instead for an inquiry which was independent of bankers and politicians. Continue reading the main story “ Start Quote We all know that these events are not representative of our culture, and it is my responsibility to get to the bottom of that and resolve it” Bob Diamond Barclays chief executive in a letter to staff Barclays' letter in full "I'm not convinced by his way forward because I do not believe it measures up to the scale of what is required," he said. Mr Tyrie, who will chair the parliamentary inquiry, said this would be a "ringfenced job" and was not about "trying to work out how to reform the whole banking industry". Instead he said it would be looking specifically at one question. "What does the Libor scandal, what does this scandal in the market, where people have made money by rigging the market, say about the standards and the corporate culture of banks?," he said. The inquiry comes after a series of issues that have undermined public confidence in the financial sector, including the mis-selling of billions of pounds worth of payment protection insurance, and the mis-selling of a complex hedging insurance designed to protect small firms against rises in interest rates. Public anger Other banks are being investigated over the Libor affair, and it has emerged that Royal Bank of Scotland has sacked four traders over their alleged involvement. On Monday, Sir Philip Hampton, chairman of the RBS, welcomed the inquiry. "I fully understand why the politicians have reached that conclusion. The public's anger at some of the things that have happened in the banking industry is very obvious and I think some process, some formal process, to address that anger and to address some of the evident failings of the banking industry is very sensible," Sir Philip said. Also on Monday, Chancellor of the Exchequer George Osborne told the Commons that there would be a second inquiry, this one specifically into the operation of the Libor market. This review will be led by Martin Wheatley, chief executive-designate of the Financial Conduct Authority, and will look at the regulation and governance of the Libor market, as well as use of data and price-setting mechanisms. The inquiry will be able to call witnesses under oath, and is expected to report its findings by the end of 2012, Mr Osborne said. The Banking Bill would be amended to reflect the inquiry's recommendations, he added. The chancellor also said that fines on the banking sector, including the £290m imposed on Barclays, will be used to benefit the taxpayer and not paid to other banks via the Financial Services Authority, as had been thought. He said no decision had yet been taken on where the money would be spent. "I'm sure this House will have a lively debate on that," he said. Prosecution Continue reading the main story Nick Robinson Political editor “ Start Quote The MP who's been asked to chair an inquiry into banking has told me that this is "a ringfenced job" which is not trying to work out how to reform the whole banking industry ” Read more from Nick The SFO said it was working closely with the Financial Services Authority and was now "considering whether it is both appropriate and possible to bring criminal prosecutions". Meanwhile Barclays' chief executive Bob Diamond said in a letter to staff that he would "get to the bottom" of what happened and resolve it. "We are being thorough and robust while also ensuring that we undertake due process. "We are reviewing those directly responsible and those in supervisory roles. We have the full range of tools at our disposal, from clawing back compensation to asking people to leave the bank," he said. Marcus Agius earlier confirmed his resignation as chairman of Barclays over the scandal, saying: "the buck stops with me". Mr Miliband has called for Mr Diamond, who ran Barclays investment bank BarCap during the crucial period, to resign. The Labour leader said it was important to restore trust in British banks. "I really don't think that can be done by Bob Diamond," he said. Former Barclays director Baroness Wheatcroft told BBC News that Mr Agius was currently "carrying the can" but said Mr Diamond's resignation was now "inevitable". Blow to reputation Mr Diamond will appear before MPs on the Treasury Committee on Wednesday, followed by Mr Agius on Thursday. Mr Agius has also stepped down as chairman of the British Bankers' Association, which is responsible for compiling Libor. Nick Clegg told CBBC's Newsround that banks are "a source of shame" Mr Agius, who also serves on the BBC's executive board, said last week's events were evidence of "unacceptable standards of behaviour within the bank". He said the findings had "dealt a devastating blow" to Barclays' reputation. Barclays' board has launched an audit of its business practices, which will be conducted by an independent body and report to the new deputy chairman, Sir Michael Rake. The bank promised: a "root and branch review" of its "flawed" past practices a public report of the audit's findings a new mandatory code of conduct for all staff Barclays will establish a "zero tolerance policy" to anything that damages its reputation, the bank said in the statement. Sir Michael Rake, BT chairman and senior independent director at Barclays, has been appointed deputy chairman at the bank. He is seen as a likely successor to Mr Agius. Email trail? Mr Agius will stay on as chairman while Sir John Sunderland, a non-executive director of Barclays, looks for his replacement. Meanwhile, the Bank of England (BoE) has been drawn into the affair after a whistleblower claimed the existence of emails between the central bank and Barclays management. According to a report on the BBC's Newsnight, there may be an email exchange that could have led some traders at Barclays to believe the manipulation of Libor was sanctioned by the Bank of England. Newsnight understands that the Treasury Select Committee is examining claims that an email trail exists. However, the BoE told Newsnight that it was not aware of any emails, and Barclays said it could not comment at this stage. Barclays was fined after the Financial Services Authority (FSA) found its traders had lied about the interest rates other banks were charging it for loans. Investigations are also under way at RBS, HSBC, Citigroup and UBS. Giving a lower reading than the true rate would give the impression that Barclays was considered a better lending risk than it actually was. Reporting a higher reading than the real rate could have inflated trading profits artificially, misleading investors and regulators. The FSA found evidence that Barclays, sometimes working with staff at other banks, had tried to manipulate Libor (the London Inter-Bank Offered Rate) and its European equivalent Euribor between 2005 and 2009.

Microsoft Admits £4bn Ad Firm Now 'Worthless'

Microsoft has admitted one of its largest acquisitions in the internet sector is effectively worthless, wiping out any profit for the last quarter. The company announced a $6.2bn (£3.95bn) charge to write down the value of aQuantive, an online advertising agency it bought five years ago. The announcement came as a surprise, but did not shock investors. The purchase of aQuantive in 2007 had initially been expected to boost Microsoft's online advertising revenue and counter Google's purchase of digital ad firm DoubleClick. But the world's largest software company admitted: "The acquisition did not accelerate growth to the degree anticipated, contributing to the write-down." Microsoft bought aQuantive for $6.3bn (£4.01bn) in an attempt to catch Google in the race for revenues from search-related display advertising. It was Microsoft's biggest acquisition at the time, exceeded only by its purchase of Skype for $8.5bn (£5.4bn) last year. But it never proved a success and aQuantive's top executives soon left Microsoft. As a result of its annual assessment of goodwill - the amount paid for a company above its net assets - Microsoft said it would take a non-cash charge of $6.2bn, indicating the aQuantive acquisition is now worthless. The charge is likely to wipe out any profit for the company's fourth financial quarter.

George Osborne dismisses judge-led banking probe call

George Osborne has urged Labour to "see sense" and drop its demands for a judge-led inquiry into the rate-rigging scandal at Barclays Bank. The House of Lords will vote on the opposition's proposal today, which the chancellor said it was likely to lose. He told the BBC that the government's plan for an inquiry by a committee of peers and MPs would "put it right" more quickly by allowing rapid legal change. But Labour insists a judge is needed to ensure thorough reform of banking. Last week, regulators in the US and UK fined Barclays £290m for attempting to rig Libor and Euribor, the interest rates at which banks lend to each other, which underpin trillions of pounds worth of financial transactions, during the middle and end of the last decade. The bank's chief executive Bob Diamond has resigned with immediate effect after Labour and others called on him to do so.

RBS Blames Glitch For Mortgage Payments 'Being Taken Twice'

RBS has had to issue another apology for last month's costly technical glitch after confirming duplicate mortgage payments were mistakenly taken from customers at the height of the disruption. A "relatively small" number of accounts across the country were affected, the company said, in response to complaints. It is understood RBS and NatWest account holders are involved and RBS said it had increased call centre staff by 50% to handle a potential rise in call volumes. The bank is urging customers to get in touch if they are experiencing problems and it has promised that no one will be left permanently out of pocket. A spokeswoman said: "We apologise to any customers experiencing problems today. "We said last week that we expected to see a few bumps in the road for customers as we get things fully back on track." "Any customers experiencing problems should contact our call centre or visit their local branch and we will put things right." On Monday - almost two weeks since the RBS Group first encountered difficulties updating customer balances after the IT failure - it admitted it had taken longer than first anticipated to clear the backlog at Ulster Bank and efforts would continue during the week.

Barclays boss Bob Diamond resigns

Barclays chief executive Bob Diamond has resigned with immediate effect. The move comes less than a week after the bank was fined a record amount for trying to manipulate inter-bank lending rates. Mr Diamond said he was stepping down because the external pressure on the bank risked "damaging the franchise". Chairman Marcus Agius, who said on Monday he was stepping down, will take over the running of Barclays until a replacement is found. "I am deeply disappointed that the impression created by the events announced last week about what Barclays and its people stand for could not be further from the truth," Mr Diamond said in a statement. He will still appear before MPs on the Treasury Committee to answer questions about the Libor affair on Wednesday. "I look forward to fulfilling my obligation to contribute to the Treasury Committee's enquiries related to the settlements that Barclays announced last week without my leadership in question," Mr Diamond said. Last week, regulators in the US and UK fined Barclays £290m ($450m) for attempting to rig Libor and Euribor, the interest rates at which banks lend to each other, which underpin trillions of pounds worth of financial transactions. Staff did this over a number of years, trying to raise them for profit and then, during the financial crisis, lowering them to hide the level to which Barclays was under financial stress. Prime Minister David Cameron has described the rigging of Libor rates as "a scandal". The Serious Fraud Office is also considering whether to bring criminal charges.

RBS Dismissed 10 Traders Over Libor Manipulation

Royal Bank of Scotland Group Plc dismissed 10 traders in connection with alleged manipulation of Libor rates, the Press Association reported, citing unidentified sources. It is not known when the traders were let go, the news agency said. RBS has not commented, PA reported. Calls made outside of regular business hours to RBS spokesman Michael Strachan were not immediately returned today.