The Financial Services Authority (FSA) is losing patience with firms that are selling payment protection insurance (PPI) and not treating customers fairly in the process, and threatening to take tough action against them.

Northern Rock has scrapped plans to pay out its £59m interim dividend, following increasing pressure from both the Treasury and the FSA, says Kate O’Raghallaigh

REASONS TO BE CHEERFUL SAYS GARTMORE Gartmore fund managers Roger Guy and Guillaume Rambourg discern plenty of “reasons to be cheerful” in the European investment sector – lowest ever recorded unemployment rate (6.9%) since 1993, growth of eurozone GDP of 0.3% in the second quarter of 2007 and fears of an interest rate hike receding. [...]

MERVYN KING, governor of the Bank of England, is facing a torrid time from MPs on a House of Commons Treasury Select Committee. He is answering questions about the ‘credit crunch’ that nearly sent Northern Rock to the bottom with all hands and fending off accusations that he did not take the matter urgently enough. [...]

The Treasury has set strict limits on the protection it has extended to savers’ accounts in Northern Rock.

Sectors of the financial Establishment – the Financial Services Authority (FSA) and the Bank of England (BoE) - have been confronting each other over the last-ditch rescue of Northern Rock, the Financial Times has reported.

Up to eight million UK drivers could be taking risks equivalent to drink-driving by using hands-free mobiles, according to insurer yesinsurance.co.uk.

Shares in Northern Rock have recovered 11% (11am Tuesday) after the Government promised to protect savers’ deposits.