PRESS DIGEST - Financial Times - Aug 5

GREENSPAN WARNS OF MORE BANK BAIL-OUTS

Alan Greenspan has warned that more banks and financial institutions could end up being bailed out by governments before the current credit crisis is over. Speaking in the Financial Times, the former chairman of the Federal Reserve said that the banks' ability to recapitalise themselves would be affected by the performance of world stock markets. Mr Greenspan also expressed a worry that the process of globalisation could reverse and described the financial crisis as a "once or twice a century event deeply rooted in fears of insolvency of major financial institutions".

TORIES PRAISE EXECUTIVE BONUS MODEL

Michael Gove has praised curbs on executive rewards as a method of tackling the widening gap between rich and poor. In a wide-ranging speech on social policy, the shadow schools secretary also emphasised the Conservative aim of emphasising the role of business in modes of social mobility. Mr Gove said that the party aimed to highlight perceived good and bad examples of corporate practice in a bid to change typical boardroom behaviour.

ECONOMY IS NOW THE BIG ISSUE