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THE US Securities and Exchange Commission is investigating Royal Bank of Scotland (RBS) over its exposure to American sub-prime mortgages.

The probe was launched in March, and covers the bank’s interests in securities backed by sub-prime home loans, as well as residential mortgages written by its US subsidiaries.

RBS is cooperating with the investigation – one of dozens launched into the mortgage industry by American regulators since the crisis began to emerge last year. for more click here

If there’s a problem with the global economy, no one’s let the world’s stock market investors know.

Markets across the world have been steadily rising as hopes of an end in sight to the credit crunch become more entrenched.

Sub-prime loss announcements are becoming less shocking. Some daring players are even starting to snap up what they think are undervalued assets. Every other day a new distressed debt investment vehicle launches.

The initial earthquake in the financial sector may well be coming to an end. Trouble is, now we’ve got the real world to worry about…
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Investors cheered news of a possible Westpac-St George merger but consumer advocates and unions are worried about the consequences for competition and jobs.

The combination of the country’s No. 3 and No. 5 largest banks would produce the biggest bank in the country and may trigger further takeovers in an industry already dominated by a handful of companies. for more click here

Victoria’s peak farming body has accused the major supermarket chains of ripping off consumers and farmers by labelling the same products differently.

Grocery chains often have up to three different private brands which are priced differently but contain the same product, the Victorian Farmers Federation (VFF) told an inquiry into grocery prices in Melbourne on Monday. for more click here

The Bank of England will this week admit for the first time that it is set to breach its inflation target in the coming months and warn that Britain is destined for two years of soaring costs and weak growth.

Mervyn King, the Bank’s Governor, is poised to unveil new forecasts showing that the Consumer Price Index (CPI) will rise above 3 per cent over the next six months, forcing him to write a letter of explanation to the Chancellor. In a further blow to Alistair Darling’s credibility, the Bank will cut its economic growth forecasts for both this year and next. for more click here

There has been much talk about Shari’a-compliant finance (SCF) in recent months, but many Americans are still in the dark about exactly what it is and what it portends for the American economy and the freedoms Americans enjoy.for more click here

The number of home owners who have had their properties repossessed has increased substantially since last year.

Landlords made 38,688 repossession claims in the first three months of the year, up 16pc from the first quarter of 2007, the Ministry of Justice said today. Possession orders made by courts jumped 17pc to 27,530.

The statistics recording the number of court repossession orders issued in the first quarter of 2008 give the first proper indication of the impact of the global credit crisis on mortgage holders. for more click here

The City of London will cut 10,000 jobs over the next three years as the credit crunch hits the world’s biggest banks.

The reductions will be part of 40,000 jobs to go by the end of 2011 in the UK, according to a report by credit-checking company Experian. William Thomson, director of economics at Experian, said: “Financial services jobs are particularly vulnerable. for more click here

Citigroup is set to unveil plans to dispose of $400 billion (£205 billion) of assets at a meeting with shareholders and analysts today. for more click here

Banks are forcing up fees on current accounts held by millions of customers ahead of a crackdown on rip-off overdraft charges.

More than four million people across the country have been persuaded to take out ‘package accounts’ on the basis that monthly fees provide a series of perks. for more click here