Headlines

Michelle Bachelet, Chile’s president, swept back to power in 2013 on the back of pledges to fight inequality and put an end to the deeply entrenched privileges enjoyed by the country’s traditional elite, the Financial Times reported. So her government’s credibility took a serious blow when the single mother’s eldest son, Sebastián Dávalos, was earlier this month accused of using his influence to secure a bank loan. The ensuing uproar was such that he was forced to resign last week as head of a charitable foundation normally run by Chile’s first lady.

Shareholders in technology developer Altobridge say that questions remain to be answered over the decision to place it in receivership last year, the Irish Times reported. Intel Capital and the World Bank appointed a receiver to Altobridge last year on foot of a secured debt in a move that resulted in the loss of 45 jobs at its base in Tralee, Co Kerry and a further 85 in its offices outside Ireland. The exchequer footed the bill for the Irish workers’ statutory redundancy payments, which came to more than €270,000, through the Department of Social Protection.

Greece is headed toward a potentially destructive standoff with Europe after Germany rejected a last-minute request on Thursday to extend its loan program, the International New York Times reported. Unless the two sides can bridge their differences, Greece could find itself cut off from its financial lifeline and facing insolvency. The country’s current bailout program is set to expire in little more than a week. Neither country seems willing to budge at this point.

Japanese financial services provider Orix Corp has expressed interest in participating in the reconstruction of budget airline Skymark Airlines Inc, two people familiar with the situation said. Skymark, which filed for bankruptcy last month and agreed on a sponsorship deal with Tokyo-based fund Integral, is seeking co-sponsors to help it turn around its business, Reuters reported. Thursday was the deadline for non-aviation companies to submit expressions of interest. Airlines will have until Feb. 23.

Investment banks in the UK face an investigation by the Financial Conduct Authority regulator into possible conflicts of interest and anti-competitive practices, the Financial Times reported. However, the probe is unlikely to lead to an overhaul of the sector, say financial experts, and some of its intended beneficiaries question whether it is needed at all. The FCA announced on Thursday a review of investment and corporate banking, invoking new powers that could force banks to stop selling products and be more transparent about how they charge clients.

Six years after suffering Europe’s biggest recession, Latvia is trying a controversial recipe used in some U.S. states to free people of household debt, The Wall Street Journal reported. Parliament on Thursday passed a set of laws allowing people to choose a “non-recourse” mortgage, that will allow household borrowers the option of returning the keys to the banks if they can’t pay their loans, while preventing the lender from pursuing the borrower’s other assets. The legislation was partly modeled on non-recourse mortgage laws in 11 U.S. states.

Ulster Bank was not aware of an alleged £25-30 million black hole in one-time property giant Taggart Group’s finances, the High Court heard Thursday, the Irish Times reported. A senior banker who was part of the firm’s relationship management team claimed information that emerged later showed it was not a well-run business. Richard Ennis was giving evidence as part of the bank’s multi-million pound legal battle with former housebuilding tycoons Michael and John Taggart.

Small business owners, particularly in the construction industry, should be breathing a sigh of relief this week. The Supreme Court has delivered a decision which upholds their rights to keep payments made by companies which subsequently go into liquidation, against demands from liquidators to "claw back" the money so that it can be used to satisfy the claims of other creditors of the insolvent company, The New Zealand Herald reported.

Greek officials are planning to submit a proposal to eurozone finance ministers for breaking the impasse in debt negotiations between the new government in Athens and Greece’s European creditors, the International New York Times reported. Athens on Thursday will propose an extension of several months to the current bailout program, a government spokesman, Gavriil Sakellaridis, said on Wednesday. He declined to discuss specifics, including the length of the extension being sought, citing the delicacy of the negotiations.

As Athens and Brussels engage in a showdown over Greek debt, the ultimate power broker may reside in neither of those European capitals, the International New York Times reported. Instead, the outcome may largely be determined in Frankfurt, where Mario Draghi presides over the European Central Bank. The new leftist-led Greek government, facing a Friday deadline for coming to terms or risking a cutoff of loan money, plans to submit a new proposal on Thursday.