Bank of America

Bank of America's share price fell by 20% as US financials were routed in Monday trading over growth fears and S&P's downgrade of the US credit rating.

Moody's said it has put Citigroup, Bank of America, and Wells Fargo on review for possible credit ratings downgrades as the US government cuts support for future bailouts.

Expectations the Bank of England and European Central Bank will raise interest rates in the second quarter of 2011 have risen dramatically, a new survey of fund managers shows.

Bank shares in the US dived overnight after a group of investors united to try force Bank of America to repurchase soured mortgages packaged into $47bn of bonds.

Bank of America could offload its 34% stake in the world's largest asset manager BlackRock.

Legg Mason's Mary Chris Gay has diversified the financials holdings in the $4.8bn (£3.2bn) Value trust she runs with Bill Miller after the fund's exposure to banks hit it hard last year.

ON BONDS

The City's leading investment banks are falling over themselves to get a slice of the $700m in fees on offer from Prudential's record $21bn rights issue.

Sarasin's Daniel Briggs has reduced sterling and euro exposure in the £231m GlobalSar IIID fund over concerns for public sector deficits.

The major UK banks are falling as the market absorbs the wider implications of Barack Obama's plans to keep US banks on a tighter leash.