London 'catching' New York as financial capital - papers 18 April

Between 2002 and 2006, London's share increased from 10% to 21% of the global assets under management.

It has significantly narrowed the gap on New York, which has fallen from a 45%-share to a 36%-share over the same period. California has the next largest concentration of hedge fund managers in the US, managing 15% of global assets.

POOR AMERICANS struggling to keep up their mortgage payments will be offered new loans with more relaxed rules, in an effort to head off a wave of repossessions, reports the Independent.

The government-backed companies charged with keeping the US mortgage market on an even keel told Congress yesterday they would respond to the sub-prime mortgage crisis by loosening credit rules.

Many investors and economists have expressed concern a rise in mortgage arrears and repossessions could trigger a wider consumer downturn, and perhaps even tip the US economy into recession.

And the issue has been rising up the political agenda, too, with growing calls for a government bail-out for homeowners facing difficulties, and for new rules to curb unscrupulous practices in lending.

ABN AMRO will meet with officials from Royal Bank of Scotland and those of its two bid partner banks next week and has also extended ongoing merger talks with rival bidder Barclays, reports The Scotsman.

ABN said last night it had received a letter from the RBS-led group on 13 April and "has invited all signatories to a meeting in Amsterdam early next week to seek clarification of their intentions and interests".

RBS, Belgian-Dutch group Fortis and Spain's Santander asked the Dutch bank last week to consider plans which would entail a break-up of ABN's extensive global retail and wholesale banking operations, with the Edinburgh bank eyeing the US operation La Salle, and its Asian businesses.

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