Goldman Sachs

GROWTH MARKETS

European equities lost ground in afternoon trading ahead of a crucial EU summit, as Spain officially asked its eurozone neighbours for a bailout.

EUROZONE CRISIS

Jim O'Neill, the chairman of Goldman Sachs Asset Management (GSAM), would ditch inflation targeting if he replaced Mervyn King as the Bank of England governor as the measure has been "insufficient" over the past decade.

Two top commentators have given their views on how euro leaders should take steps to resolve the eurozone debt crisis, with both calling for Greece to stay in the euro.

Former Barclays chief John Varley is no longer in the running for the top job at the Bank of England, Investment Week understands.

CASSH

Senior executives at Lehman Brothers knew of the risks which led to the investment bank's collapse, and chose to ignore warning signs as early as 2007, according to new documents.

Goldman Sachs posted a 23% drop in profits in the first quarter of the year but managed to beat analysts' expectations, after a rebound in trading and credit markets boosted its revenue.

The results of last December's stress tests have prompted Threadneedle's Cormac Weldon to move to an overweight in financials as he calls the end of the banking crisis.