Regulators have agreed tough new rules for banks that flesh out proposals agreed by the G20 group of nations over the weekend that would force many in Europe to raise tens of billions of euros in capital in coming months.

Brown, right, with UK finance minister Alistair Darling, center, at Saturday’s G-20 meeting.

The rules will force banks to substantially improve the quality and extent of the capital buffers they hold to absorb shocks.

At least half of the capital cushion of banks must comprise common equity and retained earnings under measures agreed by the powerful Basel committee of central bank governors and bank regulators, according to people familiar with the discussions.

The committee also agreed to put “hard” limits how much banks can borrow. It is likely to set a ceiling on borrowings of no more than 25 times assets. There will be no exceptions for less risky assets.

Moreover, it also agreed that bank supervisors should be able to limit the ability of banks to make payouts to shareholders through dividends or buy-backs when times are good, enabling them to build “counter-cyclical” buffers against bad times.

The Basel committee is expected to put out concrete proposals by the end of the year and adjust them by the end of 2010 after carrying out an impact assessment.

European banks are expected to be hardest hit by the Basel committee moves as complex securities constitute a large part of their capital cushions than their US peers. The securities, a mixture of debt and equity, are known as hybrid capital.

The list of banks that need to raise common equity could include Germany’s Commerzbank and Lloyds Banking Group in the UK, as well as French and Italian banks, assuming the Italians participate in the coming weeks in the planned issue of so-called Tremonti bonds. Analysts forecast rights issues from early 2010.

Kian Abouhossein, analyst at JPMorgan, said: “I think the first banks to be forced to raise equity will be those that have hybrid capital from governments.”

Hybrid capital covers a variety of instruments, such as preference shares, that are not pure equity but have traditionally been deemed close enough to it to count towards a bank’s tier one capital ratio — the key measure of financial strength.

Some European banks have traditionally held a lot of their capital in hybrid form in an effort to minimise the dilution to equity investors from having to raise fresh funds. Regulators in Europe have allowed banks to hold more hybrid capital than their US counterparts — up to a third of total tier one capital in some jurisdictions. But that has proved problematic in the financial crisis, since hybrid capital does not have the same loss-bearing capacity as true shareholders’ equity.

Some banks — from Royal Bank of Scotland to Switzerland’s UBS — have been buying back their own hybrid debt at knock-down prices in recent months in a tactic aimed at boosting core tier one ratios with the profit on the transactions.

But many German banks, in particular, still have very high levels of “hybrid” capital and, in contrast to other countries, there has been little or no fresh equity issuance to offset it.

The publisher of a flight simulator site targeted by a hacker in May says it has presented a file of evidence to UK police identifying the perpetrator.

Avsim said it had “incontrovertible evidence” about the hacker’s identity.

The attack wiped data held on two servers and “effectively destroyed” the site, which is still being rebuilt.

The US firm said it expected the criminal complaint, filed with London police, to lead to the alleged hacker spending “time behind bars”.

“We will not name any names, but have incontrovertible evidence of the individual that performed the hack,” said Tom Allensworth, the publisher and CEO of Avsim.

“We have protected the forensic evidence and provided that evidence to the London police. We are committed to bringing justice to bear on this case.”

Mr Allensworth told BBC News that the evidence was submitted on Monday to the Southwark division of the Metropolitan Police, which was “acting on behalf of another constabulary”.

‘Next level’

The US site, launched in 1996, covers all aspects of flight simulation, although its main focus is on Microsoft’s Flight Simulator.

In addition it hosts a forum and allows enthusiasts to download extra content for flight simulations, such as new landscapes.

The firm claims it is the most-visited flight simulation site on the internet.

“Its contribution has been immeasurable,” said Derek Davis, editor of PC Pilot magazine, following the attack.

The firm said it had spent $50,000 (£30,000) to bring Avsim back online since the 12 May attack, including $25,000 from users.

It said it had filed the criminal complaint after giving the alleged hacker “two opportunities to settle” the case.

“The individual did not avail himself of the opportunity - in fact, he has ignored our proffers,” Mr Allensworth said in the statement.

“We are now doing as we promised this person we would do: ratcheting this up to the next, criminal, level.”

“We fully expect that the criminal complaint…will result in the perpetrator spending some time behind bars - under UK law.”

The firm said it was seeking prosecution under laws that “deal with unauthorised use of a computer, unauthorised and criminal theft of data, and numerous other violations of other computer and online laws”.

The Metropolitan Police could not confirm whether it had received the complaint.

The publisher of a flight simulator site targeted by a hacker in May says it has presented a file of evidence to UK police identifying the perpetrator.

Avsim said it had “incontrovertible evidence” about the hacker’s identity.

The attack wiped data held on two servers and “effectively destroyed” the site, which is still being rebuilt.

The US firm said it expected the criminal complaint, filed with London police, to lead to the alleged hacker spending “time behind bars”.

“We will not name any names, but have incontrovertible evidence of the individual that performed the hack,” said Tom Allensworth, the publisher and CEO of Avsim.

“We have protected the forensic evidence and provided that evidence to the London police. We are committed to bringing justice to bear on this case.”

Mr Allensworth told BBC News that the evidence was submitted on Monday to the Southwark division of the Metropolitan Police, which was “acting on behalf of another constabulary”.

‘Next level’

The US site, launched in 1996, covers all aspects of flight simulation, although its main focus is on Microsoft’s Flight Simulator.

In addition it hosts a forum and allows enthusiasts to download extra content for flight simulations, such as new landscapes.

The firm claims it is the most-visited flight simulation site on the internet.

“Its contribution has been immeasurable,” said Derek Davis, editor of PC Pilot magazine, following the attack.

The firm said it had spent $50,000 (£30,000) to bring Avsim back online since the 12 May attack, including $25,000 from users.

It said it had filed the criminal complaint after giving the alleged hacker “two opportunities to settle” the case.

“The individual did not avail himself of the opportunity - in fact, he has ignored our proffers,” Mr Allensworth said in the statement.

“We are now doing as we promised this person we would do: ratcheting this up to the next, criminal, level.”

“We fully expect that the criminal complaint…will result in the perpetrator spending some time behind bars - under UK law.”

The firm said it was seeking prosecution under laws that “deal with unauthorised use of a computer, unauthorised and criminal theft of data, and numerous other violations of other computer and online laws”.

The Metropolitan Police could not confirm whether it had received the complaint.

Shel Israel, author of a new book on Twitter. He says the micro-blogging service changed his life.

Shel Israel is not the kind of person you’d expect to find on Twitter all day. He’s 65.

Shel Israel, author of a new book on Twitter. He says the micro-blogging service changed his life.

But Israel has been using the micro-blogging service longer than most. In fact, he gave up his lifelong habit of reading the newspaper every day about four years ago and turned exclusively to social media.

He now knows how to use Twitter, how not to use it, and how to benefit from it, and he says Twitter has changed his life.

The social-media journalist and public speaker is the author of a new book, “Twitterville: How Businesses Can Thrive in the New Global Neighborhoods.” The book shows how Twitter flattens geographical boundaries and helps people connect with others around the world who share their interests.

To Israel, it’s the mundane details of one’s life, shared through tweets and status updates, that matter. He believes that tweeting about what you had for lunch can actually help build a meaningful personal or business relationship.

Israel also says that who you follow on Twitter is much more important than the number of people who follow you. That’s because the people you follow become “your newspaper — the way you get the information that you see, that you digest, and that you use.”

Here is an edited version of the conversation.

Prospects for reaching a new global deal on climate change are “in the balance”, according to UK Foreign Secretary David Miliband.

There is a “real chance” that December’s UN summit in Copenhagen will not reach agreement, he said.

Mr Miliband was briefing reporters prior to a whirlwind tour of European capitals aimed at stepping up EU diplomacy on the Copenhagen process.

The EU could be a “force multiplier” on the issue, he said.

In the same news conference, Mr Miliband’s younger brother Ed - the UK Energy and Climate Secretary - said the Copenhagen process was too important to be a matter for politicians only.

The deal that the world needs in Copenhagen is in the balance David Miliband

On a recent visit to Bangladesh, he related, he had seen how “two million people living on sandbanks are already living with the effect of climate change, with more flooding than usual”.

Whether Copenhagen produced money to help countries such as Bangladesh adapt to climate impacts would, he said, be “a big determinant of their survival”.

Atonement

Preparations for a new UN climate treaty to supplant the Kyoto Protocol began nearly two years ago, but in recent months it has become clear that wide divisions remain between various blocs.

Developing countries say that as the industrialised west grew rich through intensive fossil fuel use, emitting carbon dioxide in the process, western countries bear historical responsibility for climate change and must take the lead in cutting emissions.

So far, the scale of cuts pledged by western leaders has not met the expectations of the developing world.

Seas ‘threaten 20m in Bangladesh’

Neither have the sums of money coming forward to help poorest nations protect their societies and economies against climate impacts.

This means in turn that developing countries have been unwilling to pledge measures to restrain the growth in their own emissions.

“The deal that the world needs in Copenhagen is in the balance,” observed David Miliband.

The foreign secretary described the news that Japan’s incoming government would triple the size of its emission cut pledge as “very significant”.

The UK government sees itself as a leading player in international climate diplomacy. In June, Prime Minister Gordon Brown proposed setting up a fund to raise and disburse $100bn (£60bn) annually for climate protection and adaptation.

David Miliband’s tour of EU capitals is aimed at increasing and co-ordinating diplomatic efforts towards securing a Copenhagen deal, including promoting the adaptation fund.

Much of the negotiating, he said, would have to be done in the months leading up to the UN summit; and the EU, because of the influence it had in various countries, could be an effective leader in that.

Acceleration lane

An agreement with Mr Miliband’s French and Swedish counterparts, Bernard Kouchner and Carl Bildt, means that diplomatic missions of the three countries will step up lobbying across the world in the coming weeks - a period that also sees a special climate change event for heads of government at the UN in New York, and a key meeting of the G20 in Pittsburgh that may come up with new initiatives on funding.

If none of this worked well enough, the foreign secretary conceded: “There is a real danger that the talks scheduled for December will not reach an agreement”.

This is the strongest admission yet from a senior UK minister that a deal is not necessarily in the bag; and with only three months left until the summit, environmental organisations agreed that the pace and intensity of diplomacy needed to be stepped up.

“[David] Miliband’s acknowledgement that the EU must harness political will right now, in order to make a sustainable future a possibility, is very welcome,” said David Norman, head of campaigns at WWF UK.

“Copenhagen is fast approaching, and high level discussions over the next few weeks will determine whether we can achieve a decent global deal in December or if we will shackle ourselves to a future of runaway climate change.”

Manchester City could become the second English club to receive a transfer ban after being reported to football’s world governing body FIFA by French side Stade Rennes over an alleged illegal approach for a youth player.

Manchester City released a statement insisting the club had acted within the rules in signing Jeremy Helan.

1 of 2

FIFA confirmed on Tuesday that it would be investigating City’s acquisition of 17-year-old defender Jeremy Helan in February.

“We can confirm that there is a case pending with FIFA’s Player Status Department involving Jeremy Helan, Stade Rennes FC and Manchester City,” it said in a statement.

Rennes technical director Pierre Dreossi told UK newspaper The Independent that City’s move for former France youth captain Helan was “even more illegal” than Chelsea’s signing of Gael Kakuta, which saw the London side banned by FIFA from registering any new players until 2011.

Dreossi said that Helan, then 16, was targeted last year by Manchester United until City’s local rivals gave up when Rennes refused to supply an International Transfer Certificate (ITC).

City moved quickly after receiving an ITC, which Dreossi insisted was provided by the French football federation by mistake.

“We have referred this to FIFA,” Dreossi told The Independent. “For us it was strange to have no discussion from City and now, in the week after the FIFA declaration on Chelsea, I would hope that it will be the same thing for Manchester City.

“Kakuta signed up for just a possibility of a full contract. For Helan there was definitely one there, under the terms of the pre-contract agreement, because he had played for his country.

“Manchester United said it was not possible to negotiate with us but for City now this is dangerous, though we are not expecting a decision from FIFA for perhaps several years.

“Manchester City must now realize the consequences of their attitude in the Helan case as it is even more illegal than Kakuta.”

The Independent reported that the case was further complicated by the fact that Helan and Rennes are in dispute about what he agreed to in the pre-contract deal he signed as a 13-year-old. Players under the age of 18 cannot sign professional contracts.

City released a statement on Tuesday insisting that the Premier League club “acted within the rules throughout the process and in no way induced any breach of contract by Jeremy Helan.”

“Manchester City is aware of the ongoing contractual dispute in the French Labor Courts between Jeremy Helan and Stade Rennes,” said a statement on the club’s official Web site.

“The dispute between the player and the club pre-dates any interest from Manchester City. Manchester City obviously cannot comment on the case until the French Judicial Process has run its course.”

While Chelsea are determined to appeal their punishment, United may also face an inquiry after French club Le Havre refused an ITC for 16-year-old midfielder Paul Pogba, who moved to Old Trafford in May.

United have threatened Le Havre with legal action if president Pierre Louvel continues with claims that the English champions offered inducements to Pogba’s parents.

Meanwhile, Manchester City will be missing summer signing Carlos Tevez for Saturday’s Premier League clash with Arsenal.

The striker suffered a knee injury during Argentina’s 3-1 defeat by Brazil on Saturday, but manager Mark Hughes hopes he will be fit to face Manchester United the following weekend.

City’s Brazil forward Robinho is also in doubt for the Arsenal game after picking up a knock in the World Cup