Massachusetts is suing five major banks alleging “illegal” and “deceptive” conduct in the way they seized homes during the financial crisis. Bank of America, JP Morgan, Wells Fargo, Citigroup, and GMAC must pay for the “harm” caused, the writ says.

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JP Morgan Chase shot down a report that it was holding hundreds of millions of dollars in missing MF Global client funds. JP Morgan said that, much like other banks, it has been holding MF funds and awaiting instructions from the bankrupt company’s trustee.

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Royal Bank of Scotland says it will vigorously defend itself against US government claims it misrepresented the quality of mortgages it sold. The US Federal Housing Finance Agency (FHFA) has filed lawsuits

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Brazil’s central bank has unexpectedly cut the country’s key interest rate to 12% from 12.5%, citing a “substantial deterioration” in the outlook for the global economy. The bank’s rate-setting committee voted five to two in favor of

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Bank of America is selling about half of its 10% stake in China Construction Bank for $8.3bn in cash. The largest US bank said the sale would help it strengthen its capital base to comply with new global regulations, known as Basel

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Standard Chartered Bank has reported 17% rise in profits. Pre-tax profits for the first six months of the year were $3.6bn (£2.2bn), up 17% from last year. Profits grew in all of the territories where Standard Chartered

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China central bank welcomed measures taken by the US gov. to avoid a default by raising debt ceiling. Zhou Xiaochuan said the People’s Bank of China (PBC) would “closely observe its implementation

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Morgan Stanley second quarter revenues rise by 17%, The US bank’s net revenues totalled $9.3bn in the three months to 30 June, up from $8bn a year earlier. Morgan made a net loss of $558m, or 38 cents per share, during the

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Moody may downgrade the US debt rating if Congress fails to increase the US debt limit in the coming weeks and risks default. Republicans on Wednesday blocked a bill to raise the debt limit,

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RBS has launched a joint venture with a Chinese firm The tieup with China’s Guolian Securities will allow RBS to manage share sales and issue debt in China’s fast-growing financial markets. RBS Asia boss John McCormick said the venture could also help UK

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