Citigroup

Standard & Poor's has downgraded a raft of US and UK banks including HSBC, Barclays, and Goldman Sachs following an overhaul of its ratings criteria.

The Federal Reserve plans to stress test six major US banks against market shocks, as part of an annual review of bank health.

Wall Street's biggest banks had their worst quarter of results since 2008's financial crisis, with trading revenue down 35% on last year.

US markets are down 1% and the FTSE has moved into the red after the German finance minster dampened hopes for next weekend's EU summit.

Dramatic stock market movements and disappointing economic data have caused leading economists to downgrade their growth forecasts, but they are still not predicting a recession, the FT reports.

FINANCIALS FUNDS: WORTH THE RISK?

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.

Citigroup and Scotia Capital have predicted a 0.2% contraction in GDP growth for the second quarter, renewing fears of a double-dip recession in the UK.

A former Citigroup vice president has been charged with stealing more than $19m (£12m) from the bank in what a U.S. prosecutor called "the ultimate inside job."

Investors in the top 10 hedge funds reaped returns of $28bn (£17.2bn) in the second half of last year alone, according to new data.