Friday Papers: ECB avoids disruption as banks repay funds - other news

Financial Times

* The European Central Bank avoids massive disruption as eurozone banks repay a record €442bn, but demand for shorter-term liquidity still points to significant strains; ECB grants banks €111bn in funding.

* The US government has collected more than $10bn in cash, dividends and securities from its bail-outs of Citigroup.

* The rules forcing banks to defer bonuses and limit cash pay-outs to employees would likely have the most impact on junior staff instead on top rainmakers who already live with big deferrals.

* The mortgage financiers seized by the US government during the financial crisis have paid $635m in fees to banks this year, making them Wall Street’s biggest capital markets customers in the first half of 2010, according to recent analysis.

* Financial authorities in Reykjavik scramble to work out the implications of a landmark Supreme Court judgment outlawing car loans linked to foreign exchange rates.

* Bankers and analysts expect up to 20 of Europe’s banks to be forced into cash calls as a result of this month’s stress tests, raising up to €30bn of fresh equity.

* Engineering companies’ orders in May were 61 per cent higher than a year ago.

* Australia lowers ore and coal levy to 30%.

* Toyota to recall 270,000 Lexus cars; possible engine failure found in a number of models.

The Times

* The Bank of England’s Credit Conditions survey said mortgage availability is expected to worsen in the third quarter as lenders find it more difficult to raise funds.