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AUSTIN, Texas (Reuters) - Federal Reserve Chairman Ben Bernanke on Monday urged decisive action to protect the U.S. economy and said the central bank had alternative tools it could employ to help as interest rates approach zero.

NEW YORK (Reuters) - JPMorgan Chase said on Monday it will eliminate about 9,200 jobs at the former Washington Mutual , which on September 25 became the largest U.S. bank to fail.

LONDON (Reuters) - The FTSE slid 5.2 percent on Monday as concerns over demand for raw materials hit heavyweight commodity stocks, while weak data highlighted problems facing the UK economy.

WASHINGTON (Reuters) - The U.S. economy has been in a recession for a year, the nation's business cycle arbiter declared on Monday, while European leaders vowed to step up public spending to try to cushion a deepening downturn.

NEW YORK (Reuters) - Oil plunged more than 9 percent to $49 a barrel on Monday after OPEC deferred a decision on new supply cuts at a meeting over the weekend.

DETROIT (Reuters) - Ford Motor said on Monday it was reviewing options for Volvo and could sell the luxury Swedish car brand as it scrambles to shore up cash amid a deep industry downturn.

DUBLIN (Reuters) - Ryanair revived its courtship of Irish rival Aer Lingus on Monday, bidding 750 million euros (645 million pounds), just half of what it offered two years ago in an approach thwarted by European regulators.

How safe are my New Star unit trusts?

Unit trusts and open-ended investment companies (OEICs) operate under well-defined rules. Investors buy units in a unit trust, which is managed by a fund management company. There has to be a clear separation between fund management companies, such as New Star, and the unit trusts, which belong to investors. The fund manager has no authority over investors' holdings. If a manager goes bust, or cannot continue for other reasons, the trustee or depositary (for an OEIC) has to take over running the funds and it is their duty to find another management company.

Who are the trustees?

There are about six trustee/depositary firms in the UK, of which the biggest are Royal Bank of Scotland, Citigroup, Bank of New York and HSBC. They ensure that investors' monies are held in a ring-fenced account that cannot be accessed by fund management. The trustee itself can only take money from the account to pay investors wanting to sell units and for fund managers' fees. Investors' money does not pass through the fund manager's books.

Can I still buy and sell fund units?

Yes, contracts to buy or sell investments are with the trustee/depositary and dealing should continue, even if a fund manager collapses. Cheques for unit encashments will come from a separate account, which administrators or liquidators of the fund manager cannot touch. Those investing via fund supermarkets should get sale proceeds from the supermarket. But as investors are likely to shun firms with uncertain investment management, the unit price could be on a "bid basis" — in effect 5% lower than usual — to reflect managers' inability to find new investors to replace those leaving. Investors with monthly savings plans will continue to invest until their direct debit stops.

What if a fund manager goes under?

Trustees or depositaries will generally put the contract out to tender to find a new fund management group, which would then take over the running of the unit trusts. Another established management firm would be likely to take over day-to-day running of funds.

Has this happened before?

Investment management firms have rarely hit trouble. The only unit trust firm to have gone bust was Barings, which was brought to collapse by the rogue trader Nick Leeson in 1995. But the fund management arm (and its investors) were unaffected and the firm still trades under its own name. In 1996, Morgan Grenfell found its "star" manager Peter Young had defrauded its European fund. The ultimate owner, Deutsche Bank, took the loss on its balance sheet, so no investor lost out.

What about the compensation scheme?

The Financial Services Compensation Scheme would only pay out if there was mismanagement by the depositary or trustees. Investors could also claim compensation if they were mis-sold an inappropriate fund, as happened with several high-risk split-capital funds five years ago.

Shoppers are likely to get the benefit of lower VAT rates when buying big-ticket items, BBC research suggests.

Cashpoint withdrawals are up on last year, according to Link, the operator of Britain’s ATM network.

Mortgage approvals drop again in October, official figures show, suggesting that house sales and prices have further to fall.

London Scottish Bank goes into administration after the Financial Services Authority steps in to guarantee all retail deposits.

Interest rate cuts by the Bank of England have led to a rapid decline in the number of Premium Bond prizes awarded.

Quin Parker is taken by the Swedish approach to post-work drinking

Banking giant HSBC is to axe more than 500 jobs across the country, union leaders were told today.

Investors with money in funds managed by New Star Asset Management will be protected as assets held in unit trusts and open-ended investment companies will be ring-fenced from the company.

The fall out from the pre-budget report occupied most of the money pages over the past week as numbers were crunched and tax experts tried to establish who were the winners and losers …

According to the Sunday Times, families are worse off than when Labour came to power, despite talk of a tax giveaway. It claims families where both parents work are paying £1,283 more a year than they did in 1997, while their tax bills will have risen another £200 by 2011.

It's an ill wind, etc, and it seems those rising bills could ultimately lead to a generation of more financially savvy consumes. The Mail on Sunday says the credit crunch has persuaded half of parents to teach their offspring how to budget. The case studies of some of those who have make interesting reading - pocket money has certainly increased since my day.

Budgeting is the order of the day over in the Mirror, where the Unwin household, and in particular mum Destine, is planning Christmas. On her shopping list: gifts for 16 kids, food and drink for Christmas Day and a big Boxing Day bash, and all for just £150. How does she do it? Common sense, mainly: "We quickly realised that we buy some things every year just for the sake of it. Even though we have loads of decorations we usually buy something new for the tree but this Christmas we're not going to," she said.

A few people who might not be content with a £150 Christmas featured in Tara Winter Wilson's sisterly piece for the Telegraph. "When the money goes, so does the toxic wife", it said, above a piece on how bankers' wives are apparently "going ballistic" over cancelled Amexs and non-organic food. Unusually we're asked to sympathise with "Katie's husband, Jack, whose property portfolio disintegrated in the financial crash", or Jeremy "a beleaguered hedge-fund manager" who "fell for an extremely beautiful yet extravagant woman".

Finally, have you ever wondered what David Van Day does with his money? Apparently some of you have as a story on our site from eight years ago about the I'm a Celebrity ... star is suddenly attracting interest. We imagine things will look a lot different when he gets out of the jungle - an appetite for bugs can be healthy for the bank balance.

The BBC has apologised and admitted today that a live radio show during which TV star John Barrowman exposed himself "overstepped the mark".

Ernst & Young appointed after the bank failed to make up a shortfall in its capital ratios or secure a takeover

Specialist financial services group London Scottish Bank said today that it had gone into administration.

Manufacturing activity shrunk at a record pace last month as fresh figures fuelled fears today about the depth of the UK recession.

Reclaiming your leisure time might be easier than it sounds, but there are some persuasive arguments, says Giles Morris

Stephen Hester, the new chief executive of Royal Bank of Scotland, has done the right thing.

By announcing that the Edinburgh-based bank, which also owns NatWest, will give customers in difficulty a six-month moratorium before beginning repossession proceedings, he is making it harder for the government to claim a victory over the banking sector.

Smart move, given that as of today the taxpayer owns almost 58% of the bank. But it will not make much difference to repossession statistics unless other lenders follow suit.

RBS does not have a long list of customers whose homes are on the brink of being repossessed and Hester would be unlikely to make such a major announcement if felt it would have a serious impact on the bank's battered finances.

The pledge will only make a real difference to troubled customers if other lenders follow suit. The first should be Northern Rock, 100% state owned, and responsible for one-in-10 repossessions.

The Royal Bank of Scotland will allow defaulting customers six months' grace before taking any legal action against them.

New Star, John Duffield's asset management group, is fighting for its survival after entering urgent negotiations with its bankers about a debt for equity swap.

Shares in the fund management group, floated at 225p three years ago, collapsed 70% to 4.4p after the UK Listing Authority refused Duffield's request to suspend the shares.

While the company has been pummelled by falling global stockmarkets it is also debt-laden. It has £230m of debt after borrowing £300m in the spring of 2007 to return cash to shareholders when Duffield received £45m - four times more than the company's current market valuation.

Duffield is in talks with banks at HBOS, Lloyds TBS, Royal Bank of Scotland, HSBC and National Australia Bank, about swapping some of that debt for equity to bolster the balance sheet.

In an announcement to the stock exchange this morning, the company said: "New Star announces that it is in advanced and constructive discussions with its bank syndicate. Pending the outcome of these discussions, New Star has requested a temporary suspension of its ordinary shares. A further announcement will be made as soon as possible."

But when the request to the UKLA - which is run by the Financial Services Authority - was denied, the company was forced to issue another statement which said: "Further to the earlier announcement today, the UKLA has denied New Star's request for a suspension of trading in its ordinary shares. Discussions with our bank syndicate are continuing and a further announcement will be made when the outcome of these discussions is known."

A number of companies listed on the stockmarket are currently in discussions with the bankers, including a string of housebuilders which are all trying to repair their balance sheets.

New Star signalled its problems last week when it stopped investors leaving its International Property Fund. Chief investment officer Stephen Whittaker has also left while the group tries to repair its investment performance.

If the debt for equity swap fails, a possibility for New Star is to sell out to a rival such as Aberdeen Asset Management or to Resolution, the soon to be floated acquisition vehicle run by insurance expert Clive Cowdery.

Cash-strapped consumers are prepared to overstretch themselves on credit, a survey suggests.

The number of mortgages approved for house purchases fell back to a record low in October, despite a fall in interest rates at the start of the month, figures showed today.

Lenders approved 32,000 home loans for buyers during the month, the same record low as in August, according to the Bank of England. This reverses a slight uplift in September when 33,000 mortgages were approved.

The value of the loans fell below August's level, however, to £3.9bn, as falling house prices and lending restrictions pushed down the value of each loan.

Mortgage lending for new purchases is running at more than 60% below the level of last October, when 88,000 loans worth a total of £12.2bn were granted to buyers.

The drop follows a year of falls in the housing market, which have shaken the confidence of buyers, and a period in which lenders have clamped down on high loan-to-value deals, with many now insisting on deposits of at least 25%.

October's figures also show a slump in the value of loans advanced during the month, following low approval levels in previous months.

The value of net mortgage lending, which takes into account repayments and redemptions, dived by 70% from £1.5bn in September to just £459m, and represented just 6% of the figure for October 2007.

The fall dragged down the total net lending to individuals, offsetting an increase in the value of other borrowing taken on during the month.

Consumer credit rose to £844m from £345m in September, and made up the majority of the total £1.3bn advanced to borrowers.

The increase was driven by a rise in borrowing on credit cards, which rose from £274m to £398m, and other consumer credit including personal loans and overdrafts, which increased more than six-fold to £446m.

A separate report published yesterday by accountancy PricewaterhouseCoopers also showed an increase in consumer borrowing. It said total borrowing reached £1.5tn in the year to September, driven mainly by a 6% growth in unsecured lending on credit cards and loans.

Separate figures from the Building Societies Association (BSA) show net lending by its members was down 45% year-on-year in October to £413m, but had improved slightly from September's figure of £314m.

Gross mortgage lending stood at £3.2bn, a decline of 30% on October last year.

The director general of the BSA, Adrian Coles, said: "With the depressed state of the housing market, it is no surprise that mortgage lending by societies remains low, albeit slightly improved in September.

"With confidence in the market so restrained, homeowners are choosing to stay put rather than move, while first-time buyers continue to wait for further falls in prices."

Howard Archer, chief UK economist at IHS Global Insight, said the low number of approvals suggested house prices "still have a long way to fall".

He added: "Ongoing very tight credit conditions, still relatively stretched housing affordability on a number of measures, recession, faster rising unemployment and widespread expectations that house prices are likely to fall a lot further form a powerful set of negative factors weighing down on the housing market."

The BSA also reported a drop in the value of savings deposits paid into societies. During October, net receipts added up to just £115m, down from £170m in September and just 3% of last October's figure of £3bn.

October 2007 was a record breaking month for payments into societies, which was a result of savers looking for a new home for money taken out of Northern Rock, but this year's figure is still below normal.

Coles said: "With the continuing squeeze on household incomes, people have less to save and are possibly choosing to repay existing debt rather than save."

Royal Bank of Scotland announced today that it would give struggling homeowners at least six months before launching repossession action.

Borrowers who fail to keep up with mortgage repayments will be given a six-month breathing space by the Royal Bank of Scotland (RBS), according to reports.

Consumers are planning to sacrifice short holidays, eating out and garden improvements as they strive harder to pay back debts in 2009.

With the credit crunch straining the balance sheets of corporate Europe, some of the largest names in investment banking are turning to their debt businesses to take on advisory-only rivals in the long-standing war for corporate mandates.

Funds of hedge funds are trying to manage liquidity by reducing their fees in the hope of staunching the flood of withdrawals and encouraging new investment (PDF)

Michael Portillo is a journalist, broadcaster and a former Conservative politician. He began working for the Tories in 1976 and entered the Commons in 1984. He was a minister for 11 years and has held three Cabinet posts including as Defence Secretary.

THE solicitor-general, Vera Baird, has signalled the introduction of new rights for millions of carers of elderly relatives and sick children, raising the prospect of a clash with Lord Mandelson, the business secretary.

On Friday, Ken Robins decided to tell the government what was happening in the real world. The entrepreneur, who runs a successful coach firm in Bournemouth, wrote to Lord Mandelson, the business secretary, to set out just how tough the banks are being despite ministers publicly encouraging them to lend.

When Paul and Ann de Savary’s daughter Laura was born tiny and premature, they knew she was likely to have problems but they were totally unprepared for what lay in store. At six months old, a doctor told them Laura would never walk or talk. “It was, ‘Oh, you’ve got a vegetable here. Goodbye, cope as best you can’,” says Ann.

About 180,000 small businesses will be worse off as a result of next Monday's temporary reduction in VAT.

The top end of the property market could suffer as a result of new tax rules laid out in the pre-Budget report

Proposals on the investment advice process were unveiled by the Financial Services Authority this week.

It is likely to take more than the lavish launch of Dubai's Atlantis hotel to raise a smile from investors in the Middle East

Borrowers who do not want to keep paying for a new mortgage rate every couple of years are locking into deals that last for the lifetime of the loan.

It is hard to enjoy a film properly if you know how it is going to end. Harder still if you know that the ending is not a happy one. So it was with this year's Pre-Budget Report.

Bad times are back for tech stocks, but the market is ignoring how much a part of the fabric of the economy technology has become. Eoin Gleeson examines the sector and picks one promising stock.

Gold and silver have had a torrid week, leaving many investors weeping. But, says Dominic Frisby, August is traditionally a good month to buy precious metals. Here, he gives four reasons why you should do just that.

The wedding industry exists to make you think you need things you don't, and then to pay through the nose for them. And not just the happy couple: guests get fleeced too, says Merryn Somerset Webb.

Russia has built its recent might on high fuel prices. But as the credit bubble pops and the economy slows down, oil prices are falling. Russia is flexing its muscles while it can, says John Stepek.

As economies develop, spending on healthcare rises - it’s a trend that's already underway in Asia. Here, Cris Sholto Heaton focuses on Vietnam and picks a stock that could be a big beneficiary.

Investing in property may be out of favour in much of the world, but if you're looking to invest in real estate, there's one place that's beautiful, civilised and good value – Argentina.

The recent fall in oil prices can't save us from recession, says John Stepek. The rising price was a symptom, not a cause, of the unchecked global boom and its fall is a sign that we're in a huge downturn.

Union leaders have reacted furiously to news that banking giant HSBC is to axe more than 500 UK jobs.

As many as 10,000 savers had to be rescued by the Government this morning as subprime lender London Scottish Bank collapsed

Pressure was mounting on RBS's rivals to follow its pledge to give homeowners at least six months' grace before starting repossession action

Mortgage lending collapsed in October, as it dived by nearly 70% over the month to reach the second lowest figure on record, the Bank of England said.

New Star Asset Management had a request to suspended its shares declined after they crashed. We answer investors' questions

New Star Asset Management was in crisis talks with banks today as it was denied a suspension in trading of its shares, which lost 70% of their value

Financial Mail examines the impact of the Chancellor's Pre-Budget Report on families

Sky News understands Asda supermarket is in line to buy several Woolworth's stores.

One in six Britons feel they cannot afford to repay their debts as household borrowing soars to £1.5 trillion, research has revealed.

A union which represents Aer Lingus staff says it has major concerns about Ryanair's new takeover bid for the airline.

Not long ago banks offered reasonably priced mortgages to almost everyone, but some now find themselves stuck on sky-high rates

Mortgage bills for hundreds of thousands of London homeowners are set to be slashed again this week