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€ per $ 0.907 0.Nov 8 prev
£ per $ 0.782 0.
€ per £ 1.161 1.
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£ index 79.197 79.
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Gold $ 1484.25 1486.05 -0.INTEREST RATES
price yield chg
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UK Gov 10 yr 147.08 0.70 -0.
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US Gov 30 yr 107.13 2.39 -0.
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Fed Funds Eff 1.83 2.04 -0.
US 3m Bills 1.56 1.56 0.
Euro Libor 3m -0.44 -0.45 0.
UK 3m 0.80 0.80 0.
Prices are latest for edition Data provided by MorningstarST E FA N WAG ST Y L— WEALTH EDITORUBS, the Swiss bank that manages the
wealth of some of the world’s richest
people,hasrushedtothedefenceofbil-
lionaires, arguing they are better cor-
porate leaders and receive unfair criti-
cisminthepress.“I am not saying billionaires should be
heroes,” said Josef Stadler, head of the
ultra-high net worth unit at UBS. “But at
least they should be recognised.”
The bank, which is the world’s biggest
private wealth manager, yesterday
released a report showing that listed
companies run by billionaires outper-
formed less wealthy chief executives on
stock exchanges and delivered wide-
ranging economic benefit. Shares in
some 600 publicly quoted companies
controlled by billionaires rose17.8 per cent between 2003 and 2018
compared with an overall 9.1 per cent
gain in global stock markets, as meas-
ured by the MSCI All-Country World
index, according to the research by UBS
and PwC, the accountancy firm.
The report coincides with a growing
debate in the US and Europe on wealth
inequality. The authors argue that while
billionaires enrich themselves, they
benefit society by generating jobs, creat-
ing wealth for others and paying tax.
Mr Stadler told the Financial Times
there was “bias in the media” regarding
billionaires focusing on greed or making
“too much money on the back of poor
people”. He said: “The data tells me that
the debate is one-sided and it’s a pity.
There is a natural tendency today to be
critical when it comes to wealth accu-
mulation. There is sometimes a fear that
there is a new aristocracy coming.”Mr Stadler acknowledged criticism of
multinationals over cross-border tax
schemes. “This certainly needs to be
closely watched,” he said. UBS has been
hit with billions of dollars in fines for
helping rich clients evade tax.
The stock market performance is
boosted by the surge in valuations of bil-
lionaire-led technology companies such
as Facebook and Alphabet. The report
shows that the billionaires’ stock mar-
ket successes are clearest in the US, fol-
lowed by China.
The report’s methodology considers
control to be 20 per cent of a company’s
equity or 30 per cent of a company’s vot-
ing rights. That would exclude famous
billionaire founders such as Jeff Bezos,
who owns only 11.6 per cent of Amazon,
but the report allows for the inclusion of
others where “the billionaire evidently
steers the company”.World’s billionaires are victims of bad
press, says boss of UBS ultra-rich unit
© THE FINANCIAL TIMES LTD 2019
No: 40,243★†
Printed in London, Liverpool, Glasgow, Dublin,
Frankfurt, Milan, Madrid, New York, Chicago, San
Francisco, Orlando, Tokyo, Hong Kong, Singapore,
Seoul, Dubai, Doha
AnalysisiPAGE 3India struggles with life
under a heavy cloudSATURDAY 9 NOVEMBER/SUNDAY 10 NOVEMBER 2019
Europe edition
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R AC H E L SA N D E R S O N— MILAN
DAV I D C R OW— LONDON
Thirteen former bankers from Monte
dei Paschi di Siena, Nomura and Deut-
sche Bank were sentenced to imprison-
ment yesterday after a case that shook
Italy’s establishment and fomented the
rise of populism.
The sentences, which are among the
harshest handed out to bankers con-
victed of financial crimes, were deliv-
ered in Milan after the men were found
guilty of helping Monte dei Paschi hide
hundreds of millions of euros of losses
between 2008 and 2012, using complex
derivatives contracts.
The verdict was delivered in Milan’s
Fascist-era courthouse, site of former
prime minister Silvio Berlusconi’s cases
and high-profile Mafia trials. It seeks to
bring to a close Italy’s biggest financial
scandal, a tale of mismanagement and
fraud that led to the nationalisation in
2017 of Monte dei Paschi, the world’s
oldest bank, founded in 1472.
Judges delivered a seven-year jail
term to former Monte dei Paschi man-
agers Giuseppe Mussari and Antonio
Vigni, and five years for former Deut-
sche managers Michele Faissola,
Michele Foresti and Dario Schiraldi.
Former Nomura bankers Sadeq Sayeed
and Raffaele Ricci were sentenced to
terms between three and five years.Mr Faissola was a senior executive at
Deutsche, whose positions included
head of asset management and head of
commodities and rates. He left the bank
in 2015 and became an adviser to
Qatar’s al-Thani royal family, the largest
shareholder in Deutsche.
The sentences are longer than for
most high-profile banking crimes. Tom
Hayes, a former star trader at UBS and
Citigroup, was sentenced in 2015 to 14
years — reduced to 11 years on appeal —
for conspiring to rig Libor, the bench-
mark interest rate. Kweku Adoboli, the
UBS rogue trader, received seven years
in 2012.
However, under Italian law, the ver-dict is the first instance of judgment and
the former bankers will remain free
pending an appeal. Giuseppe Iannac-
cone, lawyer for the former Deutsche
Bank employees, said he was “shocked”
by the ruling and was ready to appeal. “I
am fully convinced of the innocence of
our clients,” he added.
The three judges also demanded
Deutsche and Nomura pay €160m
between them. Deutsche said it was dis-
appointed with the verdict and would
review the rationale for it once it is pub-
lished. Nomura said it was “disap-
pointed” and would consider an appeal.
Monte dei Paschi’s managers were not
immediately reachable.Italy hands jail terms to 13 bankers
3 Verdict over Monte Paschi losses 3 Long sentences for financial crime 3 Appeal likely
HK flare-up
First fatality
fuels protests
Mourners light candles as they pay their
respects following the death yesterday
of student Chow Tsz-lok, 22, who fell
from a car park during an anti-
government protest in the Tseung Kwan
O area of Hong Kong four days ago.
The events leading up to the incident
are unclear but many view Chow’s death
as the first fatality linked to the protests.
Hundreds of office workers marched
through central Hong Kong during their
lunch breaks yesterday amid calls for
further protests.
Some carried white flowers and wore
masks to shield their identities as they
shouted “Hongkongers’ revenge!”
Death sparks further ralliespage 4
Anthony Wallace/AFP/Getty
Mismanagement
and fraud led
to the 2017
nationalisation
of Monte
dei Paschi,
the world’s
oldest bank