The Bank of England could be given powers to offer secret financial help to failing banks under plans outlined today, to avoid a repeat of the Northern Rock debacle.

British mortgage bank Alliance & Leicester today said it had further strengthened its funding position, despite a greater-than-expected £185 (€248m) hit amid the credit crunch.

Retail stocks rallied the London market today as the FTSE 100 Index recovered from a difficult start to the week.

The Financial Services Authority’s role in the Northern Rock crisis will come under fresh scrutiny today when heads of the City of London watchdog appear for a second round of questioning from MPs in the UK.

Investors piled into blue chip stocks today as hefty gains on Wall Street sent the London market surging 3% ahead.

British estate agent Humberts warned on profits today after after the crisis at mortgage lender Northern Rock sent shudders through the housing market in the UK.

Brewing group Scottish & Newcastle led London shares higher today after European rivals Heineken and Carlsberg confirmed long-running speculation over their interest in the firm.

Scottish & Newcastle shares jumped 20% today after rivals Carlsberg and Heineken admitted their interest in a joint takeover bid.

The recent stock market turmoil could result in the loss of around 6,500 City jobs in London next year, a study revealed today.

Crisis-hit mortgage lender Northern Rock suffered again today despite a stock market bounce on hopes of lower interest rates.

British Chancellor Alistair Darling today pledged the UK government would “do everything we can” to return financial markets to normal in the wake of the Northern Rock crisis.