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Wild Wednesday drag racing: 'This is a run what you brung night.'

Wild Wednesday drag racing: 'This is a run what you brung night.'

      




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Danville baseball coach Pat O'Neil is cancer-free. He's ready to 'start living' again.

Pat O'Neil, an Indiana Baseball Hall of Fame inductee, was declared cancer-free Tuesday.

      




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2015 IndyStar Mr. Football Brandon Peters starting over at Illinois

Avon grad among four local transfers trying to become starting QBs

      




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Avon football finding out about itself — and after 2 games, it likes what it sees

The third-ranked Orioles knocked off Ben Davis 41-17 with strong QB play and a defense that just keeps scoring.

      




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IU coaches expected Peyton Hendershot to break out this year — and he's delivering so far

The new offensive scheme allowing Tri-West graduate to become a difference maker for IU offense.

      




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Plainfield volleyball turned around through tough love and hard work. It's paying off.

Plainfield's volleyball team won nine matches in 2015. This year, they've won 11 matches already. Here's what changed.

      




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In wide open Class 6A, why not Avon? State's No. 1 team is thinking big

Being ranked No. 1 in the state is old hat at certain places — Warren Central, Carmel and Ben Davis, to name a few. But not Avon.

      




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QB Ben Easters has career-night as Brownsburg bounces back against Fishers

The Kansas commit threw five touchdown passes against a defense that entered the game allowing just 6.5 points per game.

      




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'She could almost stop for some tea before the finish line': Brownsburg's Chloe Dygert Owen wins world title

The 22-year-old rider from Brownsburg became the youngest time trial winner — with the biggest margin — in the history of road cycling's World Championships.

      




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'This was a game we needed.' No. 1 Avon pushed again, but passes latest test

Avon, ranked No. 1 in Class 6A, has had to display a high level of resiliency and develop that elusive clutch gene to remain unbeaten at 8-0.

      




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Finally ... Brownsburg knocks off No. 1, previously-unbeaten Avon to advance in sectional

After five consecutive sectional losses to Avon dating to 2010, Brownsburg finally knocks off its rival in tournament

      




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Watch two styles of Native American drumming from Danville

Watch this style from the Dakotas, showing higher-pitched singing, and a lower-pitched style from Oklahoma, shown at a Danville pow wow on Saturday.

      




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Winter pow wow honors Native American tradition in Danville

The Hendricks County 4-H Fairgrounds hosted a Winter pow wow put on by Indianapolis Tecumseh Lodge, Danville, Saturday, Jan. 4, 2020.

      




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Former Brownsburg coach Steve Brunes, a 39-year Indiana coaching veteran, dies at 70

Steve Brunes spent nearly four decades coaching Indiana high school basketball with stops at Brownsburg, Cowan, Columbus East, Castle and Alexandria.

      




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It'll be Plainfield vs. Brownsburg in Hendricks County finals, though Bulldogs missing a key piece

Brownsburg upended Plainfield on Dec. 7 but the Bulldogs will be missing a key player when the two teams meet in the Hendricks County finals.

      




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Danville's Ella Collier is Hendricks County's all-time scoring leader — and she earned it.

Danville senior Ella Collier is Hendricks County's all-time leading scorer. And it didn't happen by accident.

      




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Brownsburg boys defeat Plainfield for third straight Hendricks County title

Brownsburg defeats Plainfield, 55-43

      




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3 things we learned from Brownsburg's Hendricks County girls title win

The Brownsburg Bulldogs are back on track after three dominant wins in the Hendricks County tournament.

      




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Connor Lucas' scorching hot night leads No. 4 Brownsburg past No. 9 Westfield

"I feel like, if I get hot, I'm one of the best shooters in the state," said the Brownsburg senior.

      




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Brownsburg girls get sectional revenge on Mooresville, advance to semifinals

Allison Bosse scored 23 points to lift the Bulldogs over Mooresville, 51-42, in Tuesday's sectional opener.

      




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Plainfield police officer arrested on suspicion of driving while intoxicated

An off-duty Plainfield police officer was arrested Friday night on suspicion of driving while intoxicated.

      




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Olympics can wait — Plainfield diver Daryn Wright first wants state title

Daryn Wright has a résumé, and a routine, unlike any other girl in this weekend's state swimming and diving championships.

      




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IHSAA basketball: Plainfield spoils Greenwood party as Mid-State title still up for grabs

Plainfield picked up a 59-42 win over Greenwoon on Friday night, and still has eyes on Mid-State title.

      




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This Brownsburg teen saves abandoned potbellied pigs at Oinking Acres

Olivia Head, 17, founded Oinking Acres in Brownsburg and has rescued up to 160 potbellied pigs and some other animals.

       




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Photos: Oinking Acres Pig Rescue and Sanctuary saves pigs in Brownsburg

Oinking Acres Pig Rescue and Sanctuary is making a difference in the Brownsburg community by saving more than 150 potbellied pigs.

       




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Here's what Danville looks like during coronavirus pandemic

A look at Danville, Indiana, during the coronavirus pandemic

       




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How an IU-Duke game reignited love of basketball for Notre Dame, Avon grad Austin Burgett

Austin Burgett, a former Avon High School star, is rejuvenated in part by working out with IU women's basketball legend Tyra Buss.

       




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2 found dead in overturned car in Brownsburg creek

Two people have been confirmed dead after they were found in an overturned vehicle in a creek in Brownsburg on Tuesday.

       




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How funerals are removing dead from nursing homes during coronavirus pandemic

"We all struggled with personal protective equipment in the funeral industry," said Eric Bell, funeral director and owner of David A. Hall Mortuary in Pittsboro, Ind.

       




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Funeral director on how families are honoring their loved ones during coronavirus pandemic

Eric Bell, a funeral director in Pittsboro, Ind., says the longest he's waited to hold a memorial service is two months for a deceased person. He explains why.

       




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'I can't even give them a hug': A look inside a small-town Indiana funeral home

"I love from afar, do the best I can from afar but nothing equals a hug," said Eric Ball, funeral director, owner of David A. Hall Mortuary.

       




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Browne not going to Glencore

Yes you read the headline correctly.

It turns out that Lord Browne isn't going to be chairman of Glencore after all

And, of course, if you think I look like a plonker, that's fair enough.

Here is what happened.

Glencore's announcement that it plans to list on the London and Hong Kong stock exchanges said this:

"Glencore has made its decision regarding the new chairman and is in the final stages of making the appointment, which will be communicated shortly".

I was told by impeccable sources that the chosen candidate was Lord Browne. And that is definitely the case.

However those "final stages of making the appointment" were not the formality that I and my sources believed.

When it came to the final talks between Lord Browne and Glencore, there was a disagreement about governance issues.

Anyway, Glencore came to the view that Browne wasn't quite right for it. My sense is that Lord Browne was more of a stickler for detail than this entrepreneurial company felt comfortable with.

So what on earth happens now?

Well Glencore can't float without a chairman.

Before Lord Browne became the preferred candidate, Simon Murray - the Hong Kong business leader - was the favourite to take the job.

Does he still want the job? Does Glencore want him?

I don't know, but I will endeavour to find out.

It's all a cracking corporate soap opera. But probably not the ideal curtain-raiser for the biggest flotation the London market has ever seen.

Update 15:15: Glencore has now appointed Simon Murray, former managing director of the Asian giant Hutchison Whampoa, as its chairman.




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The corporate story behind GDP challenge

A clutch of big company results today illustrate the big economic trends in the UK and the world - and also say something about what the UK economy needs if its insipid recovery is to become something a bit stronger.

First the good news.

ARM, the world-leading designer of electronic chips for smartphones, tablets and consumer devices, saw revenues rise 29% in the first three months of the year and profits increase 35% (to £51m).

If we had a few more ARMs in this country, we would be agonising less about the imperative of "rebalancing" the structure of our wealth-creation away from financial services and the City.

That said, we'd need an incredible number of ARMs to make a dent in the high unemployment figures, because ARM simply licences its technology to the likes of Apple and LG, which put the chips into their devices. Or to put it another way, ARM's success is in exploiting the grey matter of a few boffins: it manufactures nothing.

Now part of the drag on Britain's recovery is the burden of debt on households and the impact of rising commodity prices on consumers' spending power.

You can see some of that in the first half figures of Associated British Foods, which points out that world sugar prices are at a 30-year high and that there has been a sugar shortage in Europe. ABF's sugar, grocery and agriculture profits were up substantially (sugar by 27%).

ABF's Primark chain of shops, whose prices tend to be the lowest on the high street, seems to have benefited from shoppers desire to trade down and economise, since underlying or like-for-like sales rose 3%. But although that looks okay compared with competitors, it was half the rate of last year's increase.

A further manifestation of all that borrowing in the euphoric years, before the bubble burst in 2007-8, is another set of uninspiring financial results from Heathrow and Stansted airports, and their holding company, BAA (SP) limited.

The losses of the two London airports increased 8% to £211.5m and net debt in BAA (SP) was flat at a substantial £9.9bn. Net debt at the next corporate level up, BAA (SH) plc was a chunky £10.4bn, against a regulated asset base of £13bn (which moved in the right direction by 2.7%).

BAA was acquired by the Spanish group Ferrovial and partners at the height of the debt-fuelled buyout boom of 2006 - and although BAA would argue that operational performance has improved, there is a question about when if ever the owners will ever see a return on their enormous investment.

Meanwhile, in spite of the rising trend of commodities and energy, including oil, BP's profits in the first three months of the year actually fell a fraction to $5.5bn. You can see the impact of higher oil prices in a near trebling of profits to $2.1bn made in refining and marketing - but there was a significant fall in production, some of it related to the Gulf of Mexico disaster.

The fundamental BP story is that the risks and costs of extracting energy are on a secular rising trend - for which we all pay a price.

Last but never least is Barclays and its figures for the first quarter of 2011 - which show top line income lower than the first quarter of last year and below the last quarter of last year. As for profits, they were up a bit or down a bit, depending on what view you take of whether changes in the notional value of Barclays' own borrowings should be included.

The unambiguous trend is a sharp reduction in the charge of debts and investments going bad - which was 39% lower compared with a year ago and 33% down on a three-month comparison.

As for lending, loans to retail customers rose by just under £1bn to £229bn since the end of 2010 - which is neither here nor there for a bank of Barclays' size. And the overall value of Barclays' loans and investments, on a risk-weighted basis, fell 1.5% over 12 months to £392bn.

For Barclays and other big western banks, it's no longer about growing their balance sheets, about lending more and more. Their long term recovery requires deleveraging, shrinking, which is the corollary of the perceived need for western consumers and governments to pay down their respective debts.

Here's the painful part: we may need banks to become smaller, but we all suffer if in the process they starve job-creating businesses of vital finance.

Those who fear the worst won't be reassured by figures just released by the British Bankers Association (BBA), which show that net lending to non-financial businesses by banks fell £3.2bn in March.

The BBA blames weak demand from companies. And although Barclays and the other banks have promised the Treasury, in their Project Merlin agreement, that they will meet the credit needs of the economy, my electronic postbag indicates that there remains quite a gap between their perception of deserving borrowers and yours.

Update 11:15: As some of you have pointed out, ARM saw its profits increase to £51m not £51bn, as I originally said, whilst losses at the two London airports increased to £211.5m, not £211.5bn. Sorry for my brainstorm. I've probably been dealing in billions a little too often recently - due to the magnitude of our recent financial crisis.




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Aircraft carrier costs to rise by at least a billion (again)

The cost of Britain's controversial new aircraft carriers is set to rise by at least £1bn, and perhaps almost £2bn, as a result of the government's decision taken last October to make them compatible with different aircraft than those originally envisaged.

I have learned that the working assumption of the contractors on the project, which are BAE Systems, Thales UK and Babcock, is that the carriers will now cost taxpayers some £7bn in total, compared with the £5.2bn cost disclosed by the Ministry of Defence last autumn - and up from the £3.9bn budget announced when the contract was originally signed in July 2008.

One defence industry veteran said the final bill was bound to be nearer £10bn, though a government official insisted that was way over the top.

The Ministry of Defence and the Treasury believe that total final costs could be nearer £6bn, if only one of the carriers is reconfigured to take the preferred version of America's Joint Strike Fighter aircraft.

An MoD official said no final decision had been taken on whether the first carrier to be built, the Queen Elizabeth, or the second carrier, the Prince of Wales, or both would be reconfigured.

He said it would probably be the case that changing the design specification for the Prince of Wales would be the cheapest option. But if that happened, it is not clear when - if ever - the Queen Elizabeth, due to enter service in 2019, would actually be able to accommodate jets (as opposed to helicopters).

Whatever happens, the increase in the bill will be substantial - and is only regarded by the Treasury as affordable because the increment is likely to be incurred later than 2014/15, when the expenditure constraints put in place by the Chancellor's spending review come to an end.

The Treasury is adamant that the MoD will receive no leeway to increase spending before then.

An MoD spokesman sent me the following statement late last night:

"The conversion of the Queen Elizabeth Class...will allow us to operate the carrier variant of the Joint Strike Fighter that carries a greater payload, has a longer range and is cheaper to purchase. This will give our new carriers, which will be in service for 50 years, greater capability and interoperability with our allies. Final costs are yet to be agreed and detailed work is ongoing. We expect to take firm decisions in late 2012."

The disclosure of the rise in costs is bound to reopen the debate about whether the UK really needs new carriers, especially since the UK will be without any aircraft carrier till 2019, following the decision to decommission Ark Royal.

British Tornado jets are currently active in Libya, flying from a base in Italy, without the use of a British aircraft carrier.

The latest increase in likely expenditure on the enormous carriers - which are almost the size of three football pitches - stems from the decision of the Ministry of Defence in October to change the design one or both of them so that they can be used by the carrier version of America's Joint Strike Fighter.

This would mean they have to be fitted with catapults and traps - or "cats and traps" - rather than ramps.

The likely final cost will depend on whether the cats and traps are cheaper traditional steam devices, or newer-technology electromagnetic ones - and also whether the cats and traps are fitted to both carriers or just one.

Industry and government sources tell me that even if the MoD goes for the cheaper option, and even if the cats and traps are fitted to only one carrier, the additional bill will still be of the order of £1bn.

The hope however would be that in the longer term savings could be achieved because the maintenance costs of the more conventional Joint Strike Fighter should be lower.

One of the reasons the refit could be relatively more expensive is that for one of the carriers, HMS Queen Elizabeth, there would have to be a retrofit - because so much work has already been done on it.

"Retrofitting is always very pricey" said a senior defence executive.

The carrier project has been beset by controversy and cost increases.

In June 2009, I disclosed that the carrier costs had soared by more than £1bn as a result of a decision taken by the previous government to delay their entry into service.

Then last October the government, in its Strategic Defence and Security Review, came close to cancelling one or both carriers.

In the end, it committed to build both, but with the strange caveat that it might end up using only one of them. This was the reason given by the Prime Minister David Cameron in the Commons for building both:

"They [the previous government] signed contracts so we were left in a situation where even cancelling the second carrier would actually cost more than to build it; I have this in written confirmation from BAE Systems".

However in a memo to the House of Commons Public Accounts Committee (PAC), the Ministry of Defence estimated that cancelling both contracts would have saved £2bn and cancelling just one would have saved £1bn.

The MoD told MPs that "as the cancellation costs would have had immediate effect, the costs in the short term would have been significantly higher than proceeding with both carriers as planned; nearly £1bn more in financial year 2011/12 if both carriers had been cancelled".

The MoD was also concerned that cancelling the carriers would have undermined British capability and know-how in the manufacture of complex warships.

The carriers, called Queen Elizabeth Class Aircraft Carriers, are being built by the Aircraft Carrier Alliance, whose members are the UK defence giant BAE systems, the British engineering group Babcock, and Thales of France. The Ministry of Defence is also described as both a member of the Alliance and a customer.

Update 15:06:It has been pointed out to me, by what you might term a grizzled sea dog, that the UK does still possess two ships that can take aircraft. They are HMS Illustrious and HMS Ocean (which is a commando carrier with a flat top).

However they can't accommodate jet airplanes, only helicopters - so for veteran sailor it was a terrible error for the government to scrap the illustrious Harrier jumpjet.

He also takes the view, which I've heard from many other military personnel, that it would be bonkers to convert only one of the new carriers to take the carrier version of the Joint Strike Fighter - because if that were to happen, one of the carriers would be an enormous white elephant, and the other would not be able to provide a service for 100% of the time (it would need periodic servicing).

That said, the cost of retro-fitting the first carrier being built now and also redesigning the other one would certainly be nudging £2bn, maybe more.

He believes there is powerful strategic logic to building two new huge ships able to handle jets.

The problem for David Cameron is that he may find it hard to make the strategic case, since last autumn he justified building the two on the basis that it would not save any money to cancel one - which is not the most positive case for what turns out to be a very substantial public investment that anyone has ever advanced.




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Is the Treasury understating pension liabilities?

Belatedly, I've got round to looking at the Treasury's recent decision to change how it calculates the necessary contributions that have to be made to cover the future costs of unfunded public service pensions.

My interest was sparked by a letter sent to the chancellor by 23 pension experts, organised by the consultant John Ralfe. They argue that the Treasury has made a mistake in its choice of a new so-called discount rate.

If you think this is tedious abstruse stuff that has no relevance to you, think again. The aggregate public-sector net liability for pensions is so huge - perhaps £1 trillion - that it matters to all of us as taxpayers, especially those likely to be paying tax in 10 and 20 years time, that the government has a reliable and accurate valuation of pension promises.

Pensions represent, to coin the phrase, a massive off-balance-sheet debt. And as we've all learned to our cost from the financial crisis of 2007-8, it is a bad idea to carry on blithely pretending off-balance-sheet liabilities don't exist.

So what is this blessed discount rate? Well in the private sector it can be seen as the number used to translate into today's money a commitment to pay £650 a week pension (for example) for 30 years or so to a retired employee (till he or she dies), so that we can see whether there's enough money in the pension fund to pay that employee (and all the other employees) during his or her long retirement.

The point of the discount rate is to assess whether there's enough money in the pension fund - or whether it needs to be topped up.

Which is all very well, except that for most of the public sector, there are no funds or pots of money to pay for future pensions. Most of the pension promises are unfunded, payable out of employees' current contributions and out of general taxation.

That said, since public sector workers are increasingly expected to make a contribution to the costs of their own pensions, it would presumably be sensible for that contribution to be set at a level that is rationally related to the value of promised pensions.

So what is the best way of measuring the cost today of new pension promises?

Well the government has decided to "discount" those promises by the rate at which the economy is expected to grow.

Now there is some logic to that: the growth rate of the economy should determine the growth rate of tax revenues; and the growth rate of tax revenues will have a direct bearing on whether future pension promises will bankrupt us all or not.

But here's the thing. Any private sector chief executive might well be sent to prison if he or she decided to use the equivalent discount rate for a company, which would be the expected growth rate of that company's revenues or profits.

The reason is that although it might be possible to remove subjectivity (or in a worst case, manipulation) from any long-term forecast of the growth of GDP or of a company's turnover, it is not possible to remove considerable uncertainty.

To illustrate, the Treasury has chosen a GDP growth rate of 3% per annum as the discount rate for public sector pensions, which is considerably above the rate at which the UK economy has grown for years or indeed may grow for many years.

If we were growing at 3%, we would in practice be less worried about the off-balance-sheet liabilities of public-sector pensions, because the on-balance-sheet debt of the government would not be growing at an unsustainably fast rate.

To put it another way, in choosing its view of the long term growth rate of GDP as the discount rate, the Treasury is arguably understating the burden of future pensions to a considerable extent.

So what discount rate do companies use?

Well they are obliged to discount the liabilities at the yield or interest rate on AA rated corporate bonds.

Which may not be ideal, but has some advantages: there is a market price for AA corporate bonds, so the yield or discount rate is difficult to manipulate by unscrupulous employers; and it tells the company how much money would need to be in the pension pot, on the basis that all the money were invested in relatively safe investments (AA corporate bonds).

Now Ralfe and his chums believe that the discount rate for public sector promises should be the yield on long-term index linked gilts (gilts are bonds or debts of the British government) - partly because this too has a difficult-to-manipulate market price and because an index-linked government bond is a very similar liability to a public sector pension promise (both are protected against inflation, both are in effect debts of the government).

They point out that gilt interest and principal payments are paid out of future tax revenues, just as future pensions are. So if the value today of future pensions should be discounted at the GDP rate, that's how index linked gilts should be value on the government's balance sheet - which would be bonkers.

Anyway, if you've read this far (and many congratulations to you if you have), you may take the view that it would not be rational to impose a tougher discount rate on the government than on private-sector companies - which is what Ralfe et al seem to want, in that the yield on index linked gilts will always be lower than the yield on AA corporate bonds (because HMG, even with all its debts, is deemed to be more creditworthy than any British business).

But for a government and for a chancellor who have made it a badge of honour to bring transparency and prudence to public-sector finances, prospective GDP growth does look a slightly rum discount rate for valuing those enormous pension liabilities.




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Lloyds: Back in the red?

It's the first results tomorrow for Lloyds new chief executive, Antonio Horta-Orsorio - and I wouldn't be at all surprised if, in the time-honoured fashion of new brooms, he announces substantial losses on ventures that had already gone a bit wrong for his predecessors.

In particular, I would expect him to announce further significant writedowns on £20bn odd of outstanding loans to the troubled Irish economy - after last year's impairment charge of £4.3bn on Irish lending.

Also, he may well make a provision of well over £1bn to cover potential payouts to thousands of purchasers of PPI loan insurance.

This would follow last month's comprehensive defeat in the courts of Britain's leading banks, which had challenged the decision of the regulator, the Financial Services Authority, that they should pay compensation for mis-selling of the credit insurance.

If Lloyds were to incur such a big loss on its past sales of PPI policies, that of course would be seen as a very good thing by those who believe that Lloyds mis-sold to them - because it would imply that Lloyds would be ceasing its legal battle (with the other banks) to avoid making comprehensive restitution.

Anyway, the Irish and PPI debits together could well run to many billions of pounds - which would be enough to put Lloyds into losses overall for the first three months of the year, and possibly for the first six months too.

That would be embarrassing for Lloyds, though not for Mr Horta-Orsorio, who can't be held responsible for decisions made before his time.

Remember that Lloyds made a big thing last year of being back in the black, following its humungous losses in 2008 and 2009 of £6.7bn and £6.3bn respectively.

Anyway, if I'm right, and if Lloyds takes a chunky hit from Ireland and PPI, it would represent a setback to the recovery of a bank 41% owned by taxpayers - but it wouldn't impair the health of the bank in a fundamental way.

That said, it would pose a very particular question for the non-executives of Lloyds - which is why they chose to award a £1.45m bonus to the bank's retiring chief executive, Eric Daniels, earlier this year.




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RBS opposes internal firewalls

Although Royal Bank of Scotland is back in loss on a so-called statutory basis, having made the tiniest of profits in the final three months of last year, that doesn't really tell the story of what has been going on at this semi-nationalised bank.

For the record, the statutory attributable loss was £528m in the three months to March 31, compared with a profit of £12m in the last quarter of 2010 and a £248m loss in the first quarter of 2010.

But, as is par for the course with big, complex universal banks, these numbers do almost as much to obscure as to enlighten.

They are, for example, heavily influenced by changes in the valuation of debt sold by Royal Bank of Scotland to investors and of credit insurance bought from taxpayers in the form of the Asset Protection Scheme.

There was a loss of not far off £1bn on these items. Now it's moot whether it really enhances our understanding of Royal Bank of Scotland's performance that the value of these contracts - which can't be broken at a moment's notice - have moved against RBS.

More important, I think, is that operating profits of RBS's retail and commercial operations are almost a fifth better than a year ago at £1.9bn, though a little bit lower than in the fourth quarter of 2010.

The trend at RBS's global banking and markets business - what most would call its investment banking arm - was more volatile. Operating profits were £1.1bn in the latest period, double what was generated in the final quarter of 2010, but a third less than the bumper first three months of last year.

For the bank as a whole, the charge for debts going bad seems to be on an unambiguously declining trend, from £2.7bn in the first quarter of 2010, to £2.1bn in the final quarter of last year, and just under £2bn in the latest quarterly figures.

As for other important measures, RBS is succeeding in widening the gap between what it charges for credit and what it has to pay to borrow (good for shareholders, not always welcomed by customers) - and overheads appear to be under control.

So there is progress towards re-establishing RBS as thriving, growing business, which could prosper without the benefit of exceptional support from taxpayers - although that progress goes by fits and starts rather than in one giant leap (witness, as with Lloyds, a big increase in losses on lending to the troubled Irish economy).

What will perhaps spark some controversy is that the provision of credit to small businesses fell 7%. And, once again, RBS puts this down to a weakness of demand rather than a lack of any determination on its part to supply - but that doesn't enlighten on whether it's the unattractive borrowing terms on offer that puts off some potential business borrowers.

Also RBS has gone on the record for the first time with its opposition to the proposal from the Independent Banking Commission that internal firewalls should be erected inside giant banks such as RBS.

RBS says that the Independent Banking Commission's recommendation that universal banks like it should erect internal firewalls, or should put their retail and investment banking operations into separate insulated subsidiaries, are "likely to add to bank costs - impacting both customers and shareholders -without the safety gains that the broader Basel process is delivering" (the Basel process is the global negotiations on strengthening banks).

It is also striking that RBS signals that it isn't overjoyed at the unilateral decision made yesterday by Lloyds to chuck in the towel in the banks' legal battle against the regulators' judgement that they should make comprehensive restitution to those mis-sold PPI loan insurance. The banks says: "a decision on appeal of the court case...has not yet been made as it relates to important other issues of retrospective regulation".

As I've mentioned before, if RBS follows Lloyds's lead and offers a comprehensive PPI settlement, that would probably cost the bank a bit more than £1bn, about a third of the cost to Lloyds.

And if we're in the business of comparing the two partly nationalised mega banks, Lloyds and RBS, both still look some way from being in a fit state to see taxpayers' huge stakes privatised at a profit to all of us.

However if Lloyds entered the reporting season looking as though it was nearer to privatisation than RBS, their respective latest results probably show RBS inching forward a bit in that journey and Lloyds perhaps retreating slightly.




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Peston Picks is moving

My blog is dead. Long live the new blog. Or to put it another way, my page - and those of other BBC bloggers - is having a makeover. So if you don't want to read on, and you simply want to read my latest post, click here.

The reason for the change is to bring together more of my output in one place. So on the new page, you'll find many of my TV and radio pieces, and (soon) my tweets.

If I go mad and decide to do other social media, that'll be there too.

Fingers crossed that you like what you see. I can't hope that all of you will love all the changes. And in particular, I am sure some of you will be frustrated that (for cost reasons) there is now a 400 character limit on the comments you can leave.

Please don't let that put you off expressing yourselves. I can't tell you how much I value your opinions and the debate we have.

As for the posts I've written since Picks was launched in January 2007, the best place to find them is here. For future posts, the best URL for me is still bbc.co.uk/robertpeston




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IndyCar could be dancing with the stars again

FORT WORTH, Texas -- It appears an IndyCar Series driver will be dancing next month on national television.

      




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Cavin: James Hinchcliffe will shine on 'Dancing With the Stars'

Through driver-turned-dancer James Hinchcliffe, the Verizon IndyCar Series is about to experience something similar to what Helio Castroneves delivered as a celebrity contestant in 2007.

      




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IndyCar's Hinchcliffe: Dance practices cause sore feet

Andretti Autosport needs sponsorship to re-sign Indy 500 champion Alexander Rossi

      




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Cavin: Word of Bourdais deal spurs silly season talk

Frenchman reportedly leaving KVSH, kicking off IndyCar's driver movement for 2017

      




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Insider: Helio Castroneves is this era's bridesmaid

In IndyCar Series history, driver Helio Castroneves ranks second in second-place race finishes. His legacy, beyond being a three-time Indianapolis 500 winner, might be that of being this era's bridesmaid.

       




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IndyCar debate: Will Pagenaud or Power win series title?

SONOMA, Calif. — Simon Pagenaud's excellence this Verizon IndyCar Series season can be summed with two words: One mistake.

       




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'Business absolutely as normal' for Power, Pagenaud

SONOMA, Calif. – For a weekend with an IndyCar Series championship on the line and a season climaxing at Sonoma Raceway, there might not be two more relaxed drivers than Simon Pagenaud and Will Power.

       




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10 things to know about Dancing with the Stars

Before the show, audience members take the stage to dance

       




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Hinchcliffe too tired to stand … and ready for more DWTS

IndyCar Series driver James Hinchcliffe has asked to sit for this "Dancing With the Stars" interview because his body is too tired – his feet too sore – to stand.

       




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Cavin: IndyCar season in review

Simon Pagenaud and Team Penske will be the featured honorees at Tuesday night's IndyCar Series awards ceremony at the Hilbert Circle Theatre (streamed on IndyCar.com beginning at 6:45 p.m.

       




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Cavin: Josef Newgarden to Penske the right move

Don't blame Josef Newgarden for leaving Ed Carpenter's popular IndyCar Series team, and don't blame powerful Team Penske for signing Newgarden. It's the right thing to do for the employee and his new employer.

       




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Great way to spend holiday cash: '100 Years, 500 Miles' historic Indy 500 book

Coffee table picture book tells the 100-year history of the famous race