Complaints to the financial ombudsman about a type of high-cost loan where the debt is backed by a relative or friend have leapt by more than 3,000% in a year and are running at almost 800 a week. The surge in the number of unhappy customers means that sub-prime lender Amigo – the biggest provider of so-called guarantor loans – has become the UK’s most complained-about financial firm, according to the latest data. – Guardian
The crisis engulfing Greensill Capital, a controversial bank that employs former UK prime minister David Cameron, mounted on Tuesday night when it emerged that Germany’s financial watchdog has taken direct oversight of operations at a local subsidiary of the London-based lender. Greensill Capital is seeking insolvency protection in Australia and a rescue deal with new and existing backers, after two Swiss banks announced they were closing funds linked to the business over concerns about its true value. – Guardian
Britain should use its newfound Brexit freedom to turbocharge the City after Brexit, according to the author of a landmark review into stock market rules. Calling for a wide-ranging overhaul of regulations which would slash red tape and allow company founders to retain more power, Jonathan Hill said that the country cannot simply wait for the European Union to grant it access. – Telegraph
The boss of the world’s largest private equity firm took home at least $610.5 million last year. Stephen Schwarzman, the billionaire co-founder of Blackstone Group, received more than any other private equity executive in dividends and compensation in 2020, according to regulatory filings. Jonathan Gray, his right-hand man and the firm’s president, received at least $216.1 million. – The Times
A top interdealer broker has launched a legal action against two former associates over the alleged theft of funds earmarked for British tax payments. BGC Partners told investors that $35.2 million had been stolen, but that it expects to recover “most or substantially all” of the funds through insurance and litigation. The alleged theft did not “involve the operations or business of the company”, it said.- The Times
