Banking and Finance in the New World

S cuts the credit rating of five Spanish banks, including three to "junk," as struggling lender Bankia requests €19bn in state aid and Catalonia calls for assistance from central government to pay its bills.  

The head of the eurozone's central bank urged the region's leaders to take a "courageous leap" to safeguard the future of the single currency as clear divisions continued and a Greek exit remained in focus.  

Fears of a Spanish bail-out escalated after its wealthiest region asked the central government to help pay its bills and the country's fourth largest bank asked for a €19bn (£15bn) taxpayer rescue.  

ECB head Mario Draghi rejects criticism of the central bank's cheap three-year lending plan and calls for governments to take a 'courageous leap' of political imagination to save the eurozone.  

The Government could make changes to the way inflation is calculated that would save the Treasury £3bn a year, but cost pensioners and those holding index-linked bonds.  

Savers continue to pour money into bonds rather than shares in a desperate attempt to generate a decent level of income from their investments.  

As several best buys are withdrawn, we explain how to ensure that you still get a decent return on your money.