A 73-year-old pensioner challenging the Bank of Ireland (BOI) over attempts to raid his savings could face a £500,000 bill if he pursues the case in the High Court.

Sir Callum McCarthy, the former chairman of the FSA, is preparing to launch a new type of mortgage business he claims could kickstart the UK housing market.

Chancellor George Osborne is considering a £7bn "raid" on pension perks for the better off, according to reports.

Investment Week's editor in chief Lawrence Gosling will be presenting a live show at 11am today called Friday Finance.

Shadow chancellor Ed Balls is to use a major policy speech to call for a temporary emergency tax cut to stimulate the economy.

Northern Rock is to be sold rather than remutualised or floated on the stock market, the Chancellor said last night.

US inflation rose to a two-and-a-half year high, as rising food prices took their toll.

May's UK inflation reading remained unchanged from April, official figures have shown, giving Bank of England governor Sir Mervyn King some respite.

Greece's credit rating has been cut to the lowest level of any nation in the world after Standard & Poor's warned that the danger of a default by the country has risen significantly.

The International Monetary Fund (IMF) has shortlisted French finance minister Christine Lagarde and governor of the bank of Mexico Agustin Carstens for the top job as managing director.