Stock markets extend slump on Spain bailout fears

Global stock markets posted sharp declines on Wednesday and the euro dropped to a 22-month low against the dollar on growing concern over a potential Spanish bailout.

Spanish savings banks mull merger as debt crisis bites

Three Spanish savings banks, Ibercaja, Liberbank and Caja3, are considering a merger to strengthen their balance sheets as the country's debt crisis continues to bite.

Greece faces German future as euro exit looms

Germany has reportedly drawn up a six-point plan to rescue Greece and the eurozone’s other failed economies in the same way East Germany was rebuilt after the fall of the Berlin Wall.

Lloyd's of London preparing for euro collapse

The chief executive of the multi-billion pound Lloyd's of London has publicly admitted that the world's leading insurance market is prepared for a collapse in the single currency and has reduced its exposure "as much as possible" to the crisis-ridden continent.

Catalonia calls for help from central government to pay debts

European stock markets tumbled and Spain's borrowing costs shot up as the country's wealthiest autonomous region, Catalonia, called for assistance from central government to pay its bills.

ECB official calls for urgent financial overhaul

FRANKFURT, Germany (AP) — A top European Central Bank official says the 17 countries that use the euro need an "urgent overhaul" of their banking and financial system to deal with the debt crisis, including a multinational authority with the power to restructure and bail out banks.

Europe's slump deepens; US, China lose momentum

LONDON: The shadows being cast over the global economy darkened this month as the euro zone's private sector declined further and China's once-booming factories faltered, business surveys showed on Thursday.

Bank hints QE could restart this summer

The Bank of England has dropped a heavy hint that it is ready to restart quantitative easing this summer if the economy continues to falter.

EU countries to tighten control of credit rating agencies

BRUSSELS: European Union countries agreed on Monday to press for new controls on credit ratings agencies, with a law to challenge the power of the debt raters whose downgrades of countries angered politicians as they struggle with an economic crisis.

Europen banks warned against raising Greek risk exposure

BERLIN: Central banks in Europe should not increase their exposure to Greece due to the high level of political uncertainty there, Bundesbank president Jens Weidmann said in a newspaper interview published on Sunday.

G8 leaders agree need for growth, stability

G8 host President Barack Obama declared the group "absolutely committed" to growth and fiscal reforms Saturday as leaders of the world's major economies tried to bridge divisions over the eurozone's deepening crisis.

Bank of Ireland says seeking to cut more than 1,000 jobs

DUBLIN: Bank of Ireland is seeking to axe more than 1,000 jobs in a voluntary redundancy deal, as part of cost-cutting measures at the group, it said on Friday.

Europe's banks on the brink

LONDON, May 17 (IFR) - The euro zone crisis was in full swing when Jean-Claude Trichet took the podium in Berlin last October 6 for his final press conference as president of the European Central Bank.

Selling taxpayer stakes in RBS and Lloyds 'could take years'

Selling off the taxpayer stakes in Royal Bank of Scotland and Lloyds Banking Group could take years, according to financial experts who also told a committee of MPs that banker bashing needed to stop to help the shares prices recover.

EU Commission wants Greece to stay in euro zone

BRUSSELS: The European Commission hopes Greece will remain part of the euro zone but Athens must respect its obligations, the European Union's executive Commission said on Monday.

Greece lurches towards new vote, hard left leads

ATHENS: Greek politicians were set to abandon their quest to form a government today, leaving the president with one final chance to avert new elections that could drive Greece out of the European single currency.

Rebuilding Through Reform: How to Ensure Global Financial Stability

While policymakers are busy trying to mitigate the damage of the recent financial crisis, they also need to be thinking ahead to the next crisis. Esther L. George, president of the Federal Reserve Bank of Kansas City, urges policymakers to ask what really went wrong last time — and what can be done to build a more resilient financial system for the future.

Bank of Canada says can act to protect stability

VANCOUVER (Reuters) - The Bank of Canada's low inflation mandate does not prevent it from acting, in exceptional circumstances, to protect overall financial stability, a senior official said on Monday.

Greece pressures euro, investors seek safety

LONDON (Reuters) - The euro neared a three-month low and safe-haven German bonds and the Japanese yen rose on Wednesday as political disarray in Greece and the rising costs of fixing Spain's banks fueled fears the euro zone debt crisis would take a sharp turn for the worse.

Bank of England's inflation fears put more QE in balance

A further boost to the economy through more quantitative easing will be considered by the Bank of England's Monetary Policy Committee this week to combat recession.

Europe founders in rough financial seas

The economic crisis gripping Europe has cost prime ministers their jobs from the Netherlands to Italy.Protests, sometimes violent, against deep spending cuts have wracked European capitals. Recession has returned to Britain.

Budget Surplus Best Defense for Australian Economy, Swan Says

Returning Australia’s budget to surplus is the best defense against an uncertain global economic outlook and will continue to support the nation’s top credit ratings, Treasurer Wayne Swan said.

Bank of England expected to put QE plans on hold as inflation fears loom

The Bank of England is expected to freeze its £325bn stimulus programme, signalling it is more concerned about high inflation than Britain's return to recession.

ECB chief Mario Draghi pushes 'growth agenda'

The European Central Bank (ECB) head, Mario Draghi, has said that governments must push growth - but not at the expense of bringing down deficits.

Basel III: European Union nations face off over bank capital rules

BRUSSELS: Britain and Sweden, backed by eastern European allies, squared off with Germany, France and other EU states Wednesday over rules to harden the defences of banks against any crisis.

Europe reforms 'hard' without growth, says Robert Zoellick

WASHINGTON: World Bank president Robert Zoellick said Tuesday that Europe would struggle to achieve needed economic reforms without growth to support them.

Lloyds sets aside £375m for mis-selling as profits rise

Lloyds Banking Group, the part-nationalised bank, has aside a further £375m for compensation to people mis-sold payment protection insurance as it a reported better-than-expected quarterly profits.

Irish gov't warns euro stability at risk in poll

DUBLIN (AP) — The Irish government launched its campaign Monday to secure public support for the European Union's fiscal treaty, and warned that rejection could ravage Ireland's financial future and destabilize the euro currency.