Big banks to reveal sub-prime exposure

Three of Britain's largest banks - Barclays, Lloyds TSB and Alliance & Leicester - are expected to raise their dividends and give details of how badly they have been hit by the US sub-prime mortgage meltdown when they report full-year figures this week. The results from Barclays tomorrow are keenly awaited, as questions have been raised about how Barclays Capital, its investment unit, has emerged relatively unscathed so far from the global credit crisis.

Paragon closes issue

Paragon, the niche mortgage lender, is to close its books today on a rescue rights issue aimed at raising £287 million to repay a debt facility that falls due this month. The issue, which has been undermined by the decline in Paragon's shares towards the 100p price of the rights, is underwritten by UBS. Paragon provides mostly buy-to-let mortgages.

Red tape costs rise

The cost of new regulations to British business has risen by £10 billion in the past year alone, according to the British Chambers of Commerce. It wants several elements of legislation to be reviewed, including the Data Protection Act, said to have cost business more than £7 billion, and flexible working regulations, which have cost £1.5 billion in the past few years.

Vodafone eyes Arcor

Vodafone wants to buy out minority stakes in Arcor, its German fixed-line business, from Deutsche Post and Deutsche Bank, according to a German magazine report. Deutsche Post and Deutsche Bank own 18 per cent and 8 per cent of Arcor respectively and speculation that Vodafone might wish to buy the stakes is not new.

Barratt's bank denial

Barratt Developments, the housebuilder, has rejected allegations that it is in danger of breaching banking covenants. A source also played down reports that it plans to reduce land acquisitions to cut its £1.7 billion debt burden and placate its banks. Last month, it said that borrowings were “well inside our committed facilities and banking covenants”.

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