Bank failures would have forced the government to cancel police leave and deploy troops as the breakdown of the financial payments system threatened the ability of utilities to provide essential services, said David Livingstone, a fellow at the Royal Institute for International Affairs in London, a former adviser to the governments Cobra crisis response committee.
“You are talking about a situation with mass disorder and panic,” the former Royal Navy officer said in an interview. There would be “riots, pandemonium, everyone fending for themselves.” - - - - >

The U.S. unit of HSBC, the worlds third-largest bank by market value, filed a $75 million fraud lawsuit against Nemazee in New York State Supreme Court in Manhattan. The Sept. 2 suit came a week after Nemazee was arrested by the Federal Bureau of Investigation for cheating Citigroup out of $74 million.
According to U.S. prosecutors, Nemazee, 59, repaid $74 million he stole from Citigroup by tricking another bank to lend him the money on Aug. 24. That came a day after Nemazee was questioned by the - - - - >

“The principle is very clear: the custodian bank has to indemnify investors,” Frieden, 45, said in an interview at the Luxembourg Ministry of Finance. “Regarding the law, the situation is not that difficult: the custodian bank has a responsibility to make restitution for these assets.”
The comments may put pressure on UBS and HSBC to participate in Friedens plan to settle dozens of lawsuits over Luxembourg mutual funds that invested with Madoff. The nations financial regulator estimated that Luxembourg funds lost as much as 1.9 billion euros - - - - >

HSBC Holdings Plc, Europes biggest bank, is offering to buy as much as 4 billion pounds ($6.5 billion) of its notes secured by company loans. Canary Wharf Group Plc bought 119.8 million pounds of debt backed by offices in Londons second financial district in April.
All told, more than $1.8 billion of the debt was repurchased through public auctions this year by banks, real estate companies and the owner of the Greene King pub chain, according to data compiled by Bloomberg. Thats up from $164 million in - - - - >