Japan's main stock index has fallen 3.7 percent Monday as the dollar sank to a 12 1/2-year low against the yen. Investors are also jittery over news that JP Morgan Chase is buying rival investment bank Bear Stearns, which has been battered by its exposure to bets on risky mortgages. Invesors see the takeover as a sign that the credit crisis problems are deep and not going away. The Nikkei 225 stock index sank 454 points, or 3.7 percent, to 11,787.51. Earlier, it had fallen as much as 4.5 percent.

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Alliance & Leicester said profit before tax has dropped 42.6 per cent to £399 million as second half losses impacted the bank’s bottom line.The UK-based bank said write-downs in the second half led to a loss of £165 million for the year.

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Home values continued to decline in the fourth quarter of 2007, falling 3.5 percent from the third quarter and 3 percent year-over-year to a U.S. Zindex® home value indicator of $224,890, according to Zillow's Q4 2007 Home Value Report.

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For the big three credit rating agencies, growing criticism this past week that their ratings systems are flawed must have sounded like a familiar refrain.

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MasterCard's U.S. cardholders charged more in the last quarter of 2007 than they did in the previous year, but are spending less on discretionary items and more on necessities.Americans may be taking on more debt to pay for the high price of food and gasoline, which could be a troubling trend for people if the economy keeps worsening and costs don't ease.

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The House, seizing a rare moment of bipartisanship to respond to the economy's slump, overwhelmingly passed a $146 billion aid package Tuesday that would speed rebates of $600-$1,200 to most taxpayers.Read the rest of this entry »

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Moody's study suggests extending unemployment benefits, increasing food stamps fastest ways to stimulate economy.Read the rest of this entry »

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TREASURER Wayne Swan's efforts to control inflation are under threat from Australia's love affair with the credit card.Read the rest of this entry »

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With a credit crunch still stalking the corridors of the world's banks, it's hardly surprising they were the big losers on the BBC's Global 30 last year.Citigroup (down 47.3% over 12 months) and HSBC (down 7.3%) can hardly have been expected to have had a good year.Read the rest of this entry »

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The new year is upon us, and with it comes the potential to improve your financial situation.While that goal may seem easier said than done,Read the rest of this entry »

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Just last summer, analysts were predicting the subprime mortgage mess had been 'contained,' big bank CEOs were 'dancing' over the liquidity flowing in credit markets and private-equity titans yearned in Soprano-like fashion to 'kill off' the competition.Read the rest of this entry »

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The Confederation of British Industry (CBI) has downgraded its outlook for UK economic growth in 2008, amid credit uncertainty and surging energy costs.The group thinks annual growth will hit 2% next year, down from 2.2% forecast in September.Read the rest of this entry »

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The Confederation of British Industry (CBI) has downgraded its outlook for UK economic growth in 2008, amid credit uncertainty and surging energy costs.The group think annual growth will hit 2% next year, down from 2.2% forecast in September.Read the rest of this entry »

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A Bank of Canada report says an unexpected shock in the already jittery global financial markets would have a profound effect on Canada's economy, possibly threatening the viability of some companies.Read the rest of this entry »

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New York state prosecutors have sent subpoenas to Wall Street firms seeking information related to the packaging and selling of debt tied to high-risk mortgages, a person familiar with the matter said on Wednesday.Read the rest of this entry »

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