FSA passes RBS probe to independent review – papers

UK consumers are “technically” back in recession, Branson eyes Lloyds branches and the OECD urges the Bank to hike rates…we bring you today’s top stories from the nationals.

The Financial Services Authority (FSA) has handed effective control of its investigation into the near collapse of Royal Bank of Scotland to an independent review ordered by Parliament.

Sir David Walker, who has been put in charge of the inquiry into the FSA's work, has been given the power to interview officials at the regulator as well as former RBS managers and directors as part of his independent review of the FSA's report. MORE...

UK consumers are technically back in recession after household spending contracted for the second quarter running at the start of the year.
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Annual profits at Nationwide surged as the level of souring loans fell by more than a third, the country's biggest building society said yesterday. MORE...

Virgin Money is a "serious bidder" for branches set to be disposed of by Lloyds Banking Group, Sir Richard Branson has reportedly insisted. MORE...

The Bank of England should raise interest rates before the end of the year or risk letting inflation run out of control, the leading think-tank the Organisation for Economic Co-operation and Development has warned. MORE...

Google is planning to launch an "electronic wallet" that will allow users of its Android phones to use their device to make payments as an alternative to using a credit card. MORE...

Some of the biggest and best-known financial institutions in the world held billions of dollars of Libyan state funds, a leaked report has revealed. MORE...

Greece will have to ditch the euro unless it agrees tougher austerity measures, said a senior Greek official, delivering the strongest warning yet from a European insider as to what is at stake. MORE...

Royal Dutch Shell has begun talks with Rosneft on "potential exploration" in the Arctic - the week after BP's flagship deal with the Russian state oil company collapsed. MORE...

Standard & Poor's says republic faces threat of credit downgrade as fresh debt fears drive down euro on foreign exchanges. MORE...

Indonesia is the best place for entrepreneurs to start a business, a BBC survey has suggested.
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