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This is Money

After months of regulatory pressure, Wall Street banks on Thursday agreed to compensate tens of thousands of investors who find themselves stuck in the frozen market for auction-rate securities. Citigroup on Thursday agreed to buy $7.5bn worth of ARS from retail investors in the next three months, while Merrill Lynch announced it would buy back ARS it sold to investors starting next year.
Citi, Merrill, in key $20bn ARS agreement

Citigroup agreed to a $7.6 billion (3.9 billion) landmark deal with regulators yesterday to settle charges that it mis-sold bonds to customers. Hours later, Merrill Lynch announced its own plans to buy back from clients up to $10 billion of the same asset class, known as auction-rate securities (ARS). Analysts described the moves as another body blow to the banking industry.
Citigroup in $7.6bn settlement over auction-rate bonds

Defaults on corporate debt are on the rise as economic weakness takes it toll on the financial health of companies. The global default rate is expected to climb to 6.3% over the next 12 months and could reach 10% should the US sink into a protracted recession, Moodys said Thursday.
Corporate debt default could hit 10%

The danger of a systemic banking failure has passed and the worst of the credit crisis is over, Barclays' chief executive, John Varley, declared yesterday. Announcing a 33pc fall in first-half profits to 2.75bn pre-tax he accepted that "the world ahead is not going to be an easy place", but said: "The moment of greatest potential stress is now behind us. That was the liquidity crunch.."
Barclays chief says worst of crisis over

Record-breaking falls in house prices have now wiped more than 22,000 off the value of the average home, erasing all the past two years of financial gains for homeowners, figures revealed yesterday.
House prices back to 2006 and still falling

The housing market is being damaged by the Government's failure to make clear whether a stamp duty holiday is about to be introduced, according to a senior MP. Since reports of the possible move emerged, potential vendors are said to have been delaying putting their homes on the market, to wait to see if they can avoid paying a tax which could be about to be scrapped.
Government's hesitation on stamp duty is damaging housing market, says MP

The 10m customers who pay by cash or cheque every quarter are being charged 699m more than is justifiable, according to a report from a committee of MPs last week. Pre-payment meter customers, including those with second homes, are paying up to 400m more. The excess is in breach of an EU directive which states that any difference between payment methods should reflect the cost to the supplier.
Energy giants are told to pay back billions

China has strengthened controls on inflows of foreign exchange to deal with fears of speculative hot money, while at the same time making it easier for capital to leave its borders. Analysts said the move could stem the rise in Chinas forex reserves, the largest in the world, and slow the pace of the renminbis appreciation.
China introduces new forex controls

Only a collapse in the global demand for oil can save economies from a supply crisis and crude prices reaching more than $200 a barrel, according to a report out today. Energy expert Paul Stevens says that governments and companies are investing too little to meet future needs and a "supply crunch" will hit within "five to 10 years."
Supply gap could mean oil hits $200 a barrel

You don't lose half a trillion dollars and then go merrily on your way as before. When the dust settles and we are still stumbling blindly through clouds of the stuff at the moment the investment banking industry is going to emerge from the credit crisis looking very different. What is difficult is getting an agreement on what it might look like.
Here comes the credit crackdown

State error led banks to ignore the lessons of history and overdose on too-cheap money, writes Ambrose Evans-Pritchard.
Governments caused the credit crisis, but capitalism gets the blame

NIKKEI 225	AUSTRALIA ASX200	SHANGHAI	HANG SENG

OUTLOOK Royal Bank of Scotland set to announce 6 billion pounds of write-offsThomson Financial Europe AM at a glance share guide: Shares mixed, oil higher

The Friday Press Roundup

London shares outlook - lower after Wall Street slide; RBS H1 due

BROKERWATCH Iberia upped to 'buy' vs 'hold' at Citigroup; target up to 2.5 euros

Thomson Financial UK at a glance share guide

Tokyo shares close higher on weaker yen, firmer Asian equities

BROKERWATCH Northern Foods upgraded to 'buy' from 'neutral' at Goldman Sachs

STOCKWATCH BG, Galp set to rise as second well confirmed in Santos BasinTokyo shares close higher on weaker yen, firmer Asian equities - UPDATE

UK smallcap opening - Falkland Gold moves up on reverse takeover of BPC

BROKERWATCH Vodafone cut to 'neutral' vs 'buy' at Goldman Sachs; target 175p

UK smallcap opening - Corero ticks up on swing to H1 profits

London shares open lower after Wall St slide; BAT down as bid hopes wain

UK smallcap opening - Global Energy higher on successful Tilodiran 3 result

STOCKWATCH RBS higher after H1 better than worst fears

UK smallcap opening - Stanley Gibbons up after interims, confident statement

BROKERWATCH Kesa Electricals cut to 'hold' from 'buy' at Deutsche Bank; tp 180p

UK smallcap opening - Plasmon plunges on funding needs, FY sales warning

STOCKWATCH Liberty International lower; downgraded to 'underweight' by JP MorganUK small caps open flat; Plasmon plunges on financing needs, FY sales warning