Wall Street banks are facing damages to the tune of $25bn but are reluctant to set aside reserves as they fear it may encourage new claims. Suzanne Miller reports on the legal battle that threatens to spread overseas.

Latest developments in the progress of the Basel II Capital Accord have raised concerns by both US and European parties that its complexity will lead to unequal treatment. 

Melvyn Westlake says the legal row between Nomura and CSFB could result in more transparency in the world of credit derivatives.

JP Morgan Chase thought it had its Enron risks insured. Now it is fighting a legal battle to reclaim the money. The case raises wider questions about the effectiveness of credit insurance and the much-heralded convergence between banking and insurance.

Since September 11, the finance sector has come under the spotlight for its role as a conduit for terrorist funds. Politicians are making great speeches and blaming the banks. But to stop the abuses would require no less than a politically unacceptable clampdown on minorities, the curtailing of civil liberties and the halting of world trade.

Karina Robinson talks to the FSA’s Sir Howard Davies.