White House raises estimate by $2 trillion, raising fears economic growth is in jeopardy
WASHINGTON–President Barack Obama’s domestic policy proposals will face the reality of skyrocketing deficits tomorrow when officials release two government reports projecting huge budget shortfalls over the next decade.
The White House budget office and the Congressional Budget Office, a non-partisan arm [...]

Money-market mutual funds undermine the strength of the U.S. financial system and should be regulated more like banks, Bloomberg reported former Federal Reserve Chairman Paul Volcker as saying in an interview.
“Banks remain the functioning heart of the financial system, and they are protected and regulated,” Volcker, an economic adviser to the Obama administration, told the [...]

City watchdog chairman Lord Turner’s radical report on regulation of the financial system has implications for bankers, savers and borrowers alike.
These are the main planks of the Financial Services Authority’s Review
Regulation
Lord Turner said there will now be a more intensive supervision of the banks and a more intrusive approach from the watchdog.
He said the relationship [...]

The number of complaints against banks and insurance firms has soared during the past year, official figures have revealed.
The Financial Ombudsman Service received nearly 790,000 enquiries from consumers in the year to the end of March, leading to a record 127,471 new complaints.
The watchdog resolved 113,949 disputes – a 14% annual increase, ordering compensation in [...]

Public outrage has boiled over as billions of dollars in bonuses have been handed out on Wall Street the center of the 2008 financial storm that contributed to the worst recession in generations and left millions of people jobless.
Even President Obama  joined in, labeling the $18.4 billion in bonuses “shameful” and calling on Wall Street [...]

Bank of America asking a judge to let it settle a regulator’s claims it misled investors while buying Merrill Lynch on Monday said a $33 million fine is sufficient because it would have had “powerful defenses” at trial.
Though the Securities and exchange Commision faults the bank’s disclosures, it was “widely understood” that Merrill planned to [...]

The number of fake Euro banknotes in circulation has risen by almost a fifth in the last year, denting claims that it is the most counterfeit-proof currency.
As part of a special investigation, Sky News was able to purchase forged €50 banknotes from a man calling himself “Tony” in London.
He charged £100 for €300.
A Sky News [...]

Britain is showing further signs of economic recovery with FTSE 100 shares and the pound hitting their highest levels for 10 months.
The FTSE index rose to 4706 by mid afternoon – eventually closing up 74.10 points at 4682.46 – while sterling rose as high as $1.6879 against the dollar.
It also hit a one-month high against [...]

The FTSE 100 has continued its upward trend powering to a 10-month high, as markets across the world were boosted by hopes of a global economic recovery.
The Index closed up 45 points at 4896, having briefly passed the 4900 mark, spurred by earlier gains in Asia.
The FTSE has seen almost continuous growth since mid July [...]

Earlier this week Goldman Sachs demonstrated that it is, once again, the most efficient money making machine in the world when it reported profits of nearly $3.5bn (£2.1bn) for the second quarter of the year.
Six months ago, many people thought this machine was broken but they have been proved spectacularly wrong. So, does that mean [...]