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This is Money
Speculators and hedge funds have been banned from betting on British banks going bust in a dramatic move by the Citys regulator. The Financial Services Authority hopes that the temporary crackdown will prevent the downward spirals of bank share prices, reduce the likelihood of another Northern Rock-style run and encourage banks to start lending again on better terms.
Ban on speculators who could break the banks
As short-selling is banned to protect Britain's banks, Gordon Rayner names the men who have made millions from the financial crisis.
Hedge funds clipped by short-selling ban
Andrew Cuomo, the New York attorney-general, has launched a major investigation into short-selling on Wall Street to expose and bring charges against traders who have sought to damage other companies by spreading false rumours.
US regulator to hunt down the market manipulators
The US government is considering staging a vast bail-out of the hundreds of billions of dollars of failing mortgages held on the balance sheets of major banks in an attempt to end the credit crisis once and for all.
US 'bad bank' to staunch toxic debt losses
The US Federal Reserve led an $180bn (99bn) injection of cash into the world's financial markets yesterday as central banks moved to avert further banking failures. The world's biggest central banks made the money available to restart lending between banks, which has all but ceased in the wake of Lehman Brothers' collapse.
US Federal Reserve injects 99bn into world markets
The 57 per cent share price plunge of Morgan Stanley stock over the past four days represents a tipping point in the American banking crisis.
Morgan Stanley perplexes Wall Street as bank loses $20bn
Morgan Stanley is in talks with a number of potential partners led by US regional bank Wachovia and Chinese sovereign wealth fund China Investment Corporation (CIC). The bank - alongside Goldman Sachs - was targeted by short-sellers again yesterday. Both Wall Street banks are battling to retain their independence, while struggling with a continued loss of value that has seen some $131bn (72bn) erased from their combined market values in the last year.
Morgan Stanley talks to suitors but Goldman Sachs says it's business as usual
Martin Bienenstock, a lawyer for RBS, said in a Manhattan bankruptcy court that the British bank had between $1.5bn and $1.8bn in claims against Lehmans which partly relate to an unsecured guarantee and are connected to trading losses.
RBS admits 1bn gross exposure to Lehman Brothers
Fears about the strength of Britain's banks yesterday caught up with Lloyds TSB, whose shares crashed 15pc after rescuing ailing Halifax owner HBOS with an all-share 10.4bn bid. Three credit rating agencies threatened to downgrade Lloyds after details of the offer were released, potentially undermining Lloyds' financial profile - the strongest of the UK banks.
Lloyds shares plunge as ratings agencies threaten downgrade
Banco Santander, the owner of Abbey, is said to be furious about the Government's decision to waive competition rules for Lloyds TSB's 12bn takeover of Halifax Bank of Scotland. Spain's biggest bank has agreed to buy Alliance & Leicester but would have considered a bid for HBOS instead if it had known the deal might be allowed.
Santander fury about deal to secure Lloyds 'HBOS takeover'
Banks in Europe and the US will suffer a second wave of massive losses from the credit crunch over the next few months that could leave some fighting for survival with little access to additional funds, according to a report by credit rating agency Standard and Poor's.
And there may be worse to come - credit crunch, part two
Trading in Russian shares was suspended for a third consecutive day yesterday as the Kremlin struggled to respond to a financial crisis that has stirred memories of the 1998 rouble crash.
Kremlin steps in with 11bn cash boost as Russia's stock market is halted again
As banks collapse and thousands are told to clear their desks, former finance industry whizz-kids say they have never looked back after quitting their high-powered jobs.
What the City boys did next: 'We've never looked back after quitting our high-powered jobs'
Cortisol, a naturally produced steroid, can build up in the bodies of traders during times of high volatility and decrease their desire to take risks. In an experiment conducted on a trading floor in the City, I took saliva samples from a group of traders and found that cortisol increased when the volatility of the market increased. Some traders cortisol levels rose by as much as 500 per cent from one day to the next.
Hormones may be hurting stock markets