Goldman Sachs and Morgan Stanley are believed to be among eight US banks facing an investigation into the rating of their mortgage products.

The return to favour of bond funds in Q1 2010 helped Invesco Perpetual achieve the most successful launch over the period and M&G top the retail sales chart for the sixth consecutive quarter.

Many advisers will be disappointed this morning the FSA is likely to survive as new Chancellor George Osborne has been forced to water down plans to hand over banking supervision to the Bank of England.

Updated 1.45pm: The FTSE 100 dropped 2% in midday trading as uncertainty over the composition of the British government continues.

The Dow Jones advanced more than 4% in early trading Monday while the FTSE maintained impressive gains as the markets took confidence from a €750bn weekend rescue deal to defend the euro.

In crisis talks over the weekend, EU finance ministers and the IMF agreed emergency measures worth €750bn to try and prevent contagion from the Greek debt crisis affecting other countries in the eurozone.

Goldman Sachs is to "sue for peace" in the fraud trial brought by the SEC over its Abacus vehicle.

Gordon Brown said he accepted Liberal Democrats leader Nick Clegg will talk to the Tories about forming a Government before the Labour party.

Ratings agency Moody's reiterated today the outcome of the UK general election will not threaten the Government's Aaa rating.

Nigel Waterson, the Tory pensions minister, has lost the Eastbourne seat he has held for 18 years to the Liberal Democrats.