The 6am Cut London | FT Alphaville

The 6am Cut London

Spanish bond yields rise, along with unease. Borrowing costs rose above 5.5% yesterday for the first time since January. (Financial Times)

GM to close ‘one or two’ European factories as part of Opel/Vauxhall cost-cutting plans, according to people familiar with the plans (Wall Street Journal)

– The eurozone’s rescue system should be raised to €940bn by combining the existing, temporary bailout fund (the EFSF) with the ESM, which is due to start this summer, the European Council has recommended in an “options note” obtained by the FT. The Commission also included two scenarios to enlarge the total rescue system temporarily, but said the a permanent increase would be “more robust”. ( Financial Times)

The SEC is probing links between HFT firms and trading platforms including BATS, as part of investigations into the May 2010 ‘flash crash’, according to people familiar with the matter. The review is still in its early stages and there is no suggestion of wrongdoing by trading firms or exchanges. (Wall Street Journal)

Japanese pension fund raided: Tokyo-based AIJ Investment Advisers is alleged to have provided false information to clients. AIJ told regulators that about 90% of the about 90% of the roughly ¥200bn in pension funds that it managed is gone, according to a person familiar with the matter. (Wall Street Journal)

The Fed will review rules on foreign banks’ US subsidiaries after banks including Deutsche Bank and Barclays restructured their operations to avoid new capital requirements. (Financial Times)

– Brazil’s oil regulator said Chevron was not negligent in the drilling of a well that caused an offshore oil spill in November, a finding that may help the company to fight criminal charges and an $11bn lawsuit. (Reuters)

JP Morgan was ordered to pay $373m for not promoting American Century products, despite agreement (Bloomberg)

BofA trials a programme to allow homeowners at risk of foreclosure to hand over deeds to their houses and sign leases that will let them rent the houses back from the bank at a market rate. (Wall Street Journal)

– James Amine is sole head of Credit Suisse’s global investment banking department after Luigi de Vecchi, who ran the unit with him, took a sabbatical for personal reasons. (NYT DealBook) UBS hired Andrea Orcel from BAML to co-head its investment banking unit. (Financial Times)


The Masters of the Universe are taking on Bernanke, says Caroline Baum (Bloomberg)

Investors haven’t got to grips with social cohesion when evaluating sovereign risk, says Gillian Tett (Financial Times)

It’s no time for an ECB exit strategy (Financial Times)

Asian banks are pressing for bargains as their European peers sell assets (Wall Street Journal)