Hank Paulson blames FSA for Lehman failure - papers

Hank Paulson, former US Treasury Secretary, has blamed the FSA for the downfall of Lehman Brothers in his new book.

The fall of Lehmans, which the US Government refused to support, is seen as his most contentious call, according to The Telegraph, but in his new book, On The Brink, Paulson lays the blame on the FSA.

"The British screwed us," were Paulson's words when he learnt of the Financial Services Authority's (FSA) decision in the UK not to approve a guarantee which would have allowed Barclays to buy Lehman. Full story...

SOME OF BRITAIN'S leading banks and building societies are paying such miserly rates on easy-access Isas that savers would be better off in taxed accounts, reports The Times.

Halifax, part of Lloyds Banking Group, which is 43%-owned by the government, and Nationwide building society are among those guilty of the practice, which in effect cancels out consumers' tax breaks.

Savers have piled into cash Isas in recent months to beat ultra-low interest rates, as Bank rate has remained at 0.5% for 10 consecutive months. You can shelter up to £3,600 in a cash Isa and interest is tax-free. The allowance will rise to £5,100 for the under-fifties from 6 April, having already gone up for the over-fifties last year. Full story...

THE RECENT UPTURN in the commercial-property market is not based on fundamental improvements and is likely to prove unsustainable, The Independent reports.

Although December's 3% price rise was the sharpest monthly increase in more than two decades, the boost signalled only that investors were calling the bottom of the market, and will not translate into a long term recovery, says consultancy Ernst & Young's ITEM Club.

"Welcome though the bounce of activity has been, its sustainability is far from certain," Dean Hodcroft, the head of real estate at Ernst & Young, said. "The upturn has largely been based on investors deciding the bottom of the market had been reached, and the massive decline in prices over the past couple of years resulting in attractive buying opportunities." Full story...