London

Politics has a big, blond hair-do today, with Boris wiff-waffing all across the airwaves. The Mayor of London has already, this morning, called on George Osborne to do more to cut taxes, specifically the 50p rate and national insurance. And he will be leading a series of events, throughout the day, to mark the fact that the Olympic Games are exactly one year away. The Aquatic Centre will be baptised, the medal designs revealed, and general celebration staged across the city. It’s difficult not to see all this as part of Boris’s re-election bid, and perhaps as a marker for his wider ambitions. Although London’s Olympics have not been an

Away from the amateur dramatics in parliament this afternoon, the government is fighting yet another battle with the European Commission over banking reform. European leaders will vote later today on proposals to introduce the rubric of Basel III across European financial institutions. Led by EU Finance Commissioner Michel Barnier and ECB Vice-President Jean-Claude Trichet, these proposals would insist that minimal and maximum capital requirements are imposed on banks. The terms dictate that banks hold 7 per cent of their top-class assets in reserve. Britain opposes the scheme, not because the requirements are too steep: the UK’s Banking Commission has suggested that banks hold 10 per cent of their assets in reserve.

This story just keeps speeding up. Paul Stephenson, the commissioner of the Met, has now resigned because of his links to Neil Wallis. Wallis is the former News of the World journalist arrested recently as part of the investigation into phone-hacking; he was hired by the Met to offer media advice from autumn 2009 to 2010. The New York Times today claims that Wallis was reporting back to News International during this time. Boris Johnson and the Home Secretary will now have to agree on a replacement for Stephenson. Given what we have learnt about the Met in recent days, I suspect it will be an outsider. Bernard Hogan-Howe, the former chief

Yesterday’s European Banking Authority (EBA) stress test was supposed to restore confidence in the euro and Europe’s beleaguered financial institutions; it has had the opposite effect. Investors and market analysts are preparing for ‘Black Monday’ after only 8 banks failed the test and must now raise £2.2 billion between them to stave off ruin. A respected estimate by Goldman Sachs expected at least 15 banks to fail, requiring £29 billion to recapitalise. As the Spectator’s business blog reported yesterday, analysts feared that the EBA’s test would not be sufficiently stringent, and so it came to pass. The findings have served only to undermine confidence in institutions across the continent, many of

If News Corporation was not trying to buy the whole of BSkyB, there’s a good chance that phone hacking would not still be in the news today: that decision was one of the things that led to a revival of interest in the story. As has been said many times during the past few days, securing full ownership of BSkyB is regarded as crucial by the Murdochs and that is one of the reasons they were prepared to take the dramatic step of shutting down The News of the World. But the letter from Ofcom about the takeover and the possibility of Labour forcing a vote in the House of

As unveiled in Grosvenor Square earlier:

In his speech to Mansion House last year, George Osborne asked a question of his frosted and cumberbunded audience: “Should we restrict or split the activities of banks?” In his speech tonight, he looks set to deliver an answer of his own. As Robert Peston reports, the Chancellor is to announce that the investment and retail arms of banks will be ringfenced off from each other, so that the dice rolls of the Masters of the Universe cannot tumble across everyday savers’ cash. This does not mean a complete, Glass-Steagall-style separation between the two halves. But, rather, it follows the recommendations of the interim report of the Vickers Commision: banks