Lawyers in the United States were predicting a wave of legal action last night in the wake of the $1bn fraud charge brought against Goldman Sachs by the US Securities and Exchange Commission.
Richard Blumenthal, the Connecticut attorney-general, said that he had begun a review of the case, The Times reports.
"A key question is whether this is an isolated incident or part of a pattern of investment banks colluding with hedge funds to purposely tank securities they created and sold to unwitting investors."
At the weekend, lawyers were hunting for investors who lost money on Goldman's Abacus products to join a potential action against the bank.
Keller Rohrback, a class action firm, said: "We are investigating other synthetic collateralised debt obligations marketed by Goldman Sachs in which Goldman or persons acting in concert with Goldman bet against securities Goldman sold to its client." See story...
Bank dividend payments reach record low
Bank dividends across Europe are running at their lowest level on record, as the continent's recovering financial groups opt instead to retain earnings to boost capital, under pressure from regulators.
The average dividend yield among the continent's banks is now only 1.9%, according to Thomson Reuters Datastream, well below historic averages, and less than half the level of some banks' own cash deposit rates, The FT reports.
The data mark a sharp contrast with the traditional dominance of banks among big company dividend payers. Ten years ago, British bank pay-outs accounted for nearly half the dividends on the FTSE.
Today, although only a handful of the continent's top-50 banks are still loss-making two years after the height of the financial crisis, more than a quarter are still paying no dividends at all, according to Thomson One Banker. Share prices have recovered faster, keeping yields artificially low. See story...
EU finance ministers fail to agree deal on bank tax
EU Finance ministers meeting in Madrid yesterday failed to agree a deal on a new bank tax, as a row over what the proceeds of any levy should be used for intensified.
There is consensus across the 27-member community that banks should face a new charge after a series of state-backed bailouts across the continent cost taxpayers billions of pounds, The Independent reports.
However, yesterday's gathering in the Spanish capital broke up without a deal and now threatens to derail attempts at this week's International Monetary Fund meeting in Washington to agree a global strategy.
"No decision has been made," said Elena Salgado, Spain's Economy Minister. "We will have to keep talking about types of crisis-resolution instrument." There has been intense pressure from various governments to agree a deal. See story...
Greek rescue talks affected by volcano
A vital conference today between officials from Greece, the International Monetary Fund, the European Central Bank and the European Union has been cancelled because of the disruption to air travel.
A proposed package of €30bn (£26bn) of loans from eurozone countries and €15bn from the IMF has been roughly agreed, but today's meeting was designed to finalise the terms of the loans amid doubts on financial markets that a deal will be completed, The Telegraph reports.
The conference in Athens is one of many to come under pressure this week because of the grounding of most flights across Europe. The talks will instead take place on Wednesday "if conditions permit", the Greek finance ministry said. See story...
To promote 'long-term investment'
Switching 'hard and expensive'
Smaller funds still packing a punch
To drive progress