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U.K. Treasury chief Alistair Darling signaled that bankers should expect short-term pressure on large bonuses in this week's prebudget report to Parliament, but stressed the importance of the financial-services industry to the U.K. Two days before he will deliver an important prebudget report on tax and spending plans, however, Mr. Darling -- speaking at The Wall Street Journal Future of Finance Initiative -- also hinted that he won't be looking to levy a large number of taxes or spending cuts this time. The chancellor is to present his prebudget report Wednesday. Among measures the U.K.

U.K. consumers are hoarding cash due to their lack of confidence in the banking system and the negligible return that they would gain even if they did invest their money with a financial institution, a senior Bank of England official said Sunday, The Wall Street Journal reported. In a speech in Washington D.C., Andrew Bailey, executive director for banking services at the BOE, highlighted a paradox between the declining use of cash for everyday transactions and sharply increasing demand for banknotes during the financial crisis and ensuing recession. Mr.

Japan's coalition government proposed on Tuesday to spend 7.2 trillion yen ($80.6 billion) on stimulus measures, a ruling party lawmaker said, as it looks to avoid a return to recession ahead of upper house elections in mid-2010, The New York Times reported. Banking Minister Shizuka Kamei, the head of a tiny coalition party which has been calling for far a higher amount of spending, will accept the latest proposal, the lawmaker said.

The government of President Hugo Chávez of Venezuela, facing a crisis at several banks acquired by his supporters, moved over the weekend to assert greater financial control by detaining one of the country’s most powerful financiers and forcing the resignation of the banker’s brother, who is a minister and a top Chávez aide, The New York Times reported. The arrest on Saturday of the financier, Arné Chacón, and the removal of his brother, Jesse, as science minister, which Mr.

Brookfield Asset Management, a global property investor, said on Monday it is a meaningful creditor in bankrupt U.S. mall operator General Growth Properties and has held talks to assist it in its reorganization. Denis Couture, a spokesman for the Canadian asset manager, told Reuters on Monday that Brookfield has become a significant creditor of General Growth. But he would neither confirm nor deny a report last week that Brookfield had purchased close to $1 billion of General Growth's unsecured debt in recent months.

One out of five large-sized Korean firms, which their creditor lenders classified as subject to debt workout programs, have failed to undergo restructuring, going against the original plans of the financial regulators, The Korea Times reported. Earlier this year, the Financial Supervisory Service (FSS) encouraged banks to check the financial health of large debtors, particularly in struggling industries such as construction, shipbuilding and shipping.

The restructuring plan for General Motors Co.'s European operations is mostly in place, Nick Reilly, president of GM Europe, said on a conference call Saturday. There will be about 8,300 job cuts in Europe, Reilly said, confirming an estimate in a document seen by Dow Jones Newswires Friday. Reilly repeated his optimism that governments in the European countries affected by restructuring would come through with financial aid.

General Motors Co. will cede a majority stake in its China passenger-car venture to partner SAIC Motor Corp., while forming a new partnership with the Shanghai-based company to sell low-cost vehicles in India, Bloomberg reported. GM agreed to transfer 1 percent of Shanghai General Motors Co. to SAIC, China’s biggest carmaker, the companies said in a joint statement today. That will boost SAIC’s holding to 51 percent. They will also form an equally controlled venture in the first quarter of next year to make and sell small cars and mini-commercial vehicles in India.

Germany's lower house of Parliament on Friday approved a bill that seeks to pump an additional €8.5 billion ($12.81 billion) of fiscal stimulus into the economy next year, The Wall Street Journal reported. The Rapid Economic Stimulus Law passed as the country's central bank, the Bundesbank, increased its forecasts for economic activity and inflation in 2009 and 2010, but it remains less optimistic than private-sector economists about 2011 growth. The new stimulus law foresees tax relief for companies, heirs and families, and hotels.

Fears that Greece faces imminent bankruptcy are unfounded but the country must take "harsh" measures to shore up its economy, Eurogroup chairman Jean-Claude Juncker said on Sunday, Agence France-Presse reported. Greece's widening public deficit and a huge official debt has unsettled European market watchers, particularly regarding the standing of Greek government debt bonds. The concern intensified after the recent debt crisis in Dubai.