Wednesday Papers: US lawmakers scrap plan for $19bn bank fee - other news

Financial Times

* US lawmakers scrapped a proposed $19bn bank fee as Democrats struggled to secure sufficient votes to pass the Wall Street reform bill.

* The Securities and Exchange Commission has agreed to pay $755,000 to settle claims that it wrongfully fired a staff lawyer over his insider-trading investigation into Pequot Capital Management, a leading hedge fund.

* Global equity markets issuance has reached $309bn so far this year, marking the slowest start since 2005, as sovereign debt fears soured investor confidence.

* The FSA proposes a shift in auditors’ perspective through more bilateral discussions with regulators, greater scepticism and the threat of greater sanctions.

* A group of Lehman Brothers’ creditors, including Paulson & Co and Calpers, has come out against a pay-out plan for the bankrupt bank.

* Qatar Investment Authority is reported to be in talks about taking a strategic stake in National Bank of Greece, the eurozone country’s biggest lender.

* Interbank rates jump to nine-month highs amid worries that the European Central Bank may be reducing emergency financial support to financial institutions too soon.

* Clarke to slash £4bn prisons budget - jail building programme faces axe with more focus on rehabilitation.

The Times

* Shares of electric car maker Tesla Motors opened nearly 12 per cent above their float price as investors bet on the future of battery-operated vehicles.

* The number of mortgages approved in May remained broadly steady at 49,815. the BoE figures showed.