Since September 11, the finance sector has come under the spotlight for its role as a conduit for terrorist funds. Politicians are making great speeches and blaming the banks. But to stop the abuses would require no less than a politically unacceptable clampdown on minorities, the curtailing of civil liberties and the halting of world trade.
It is not a matter of how, but of when. A major cross-border bank merger in Europe involving core countries is imminent. Investment banks are busy advising their clients on possible deals, bank chief executives are flying back and forth having talks with their counterparts and lawyers are looking at the legal implications.
With multi-billion dollar acquisitions to finance, banks need inexpensive ways to replenish their capital. Tax and cost-effective, preferred shares are the answer to their prayers, but convincing the regulators to count them as Tier One can be challenging. Jules Stewart reports on the twists and turns to keep the issuers and the authorities happy.