Deutsche Bank has widened an internal probe into possible manipulation of the Libor benchmark interest rate after discovering a new chatroom where traders may have colluded, a source familiar with the matter said yesterday.

THE German government, which applied curbs on some types of short-selling last year, said it favours a far-reaching ban across Europe of so-called naked short-selling of shares, government bonds and credit default swaps.

A newspaper has reported the German government may consider taking legal action in a case in which Goldman Sachs is accused of defrauding investors.

Germany's second largest commercial property lender said a €35bn rescue plan for the company had fallen apart after private lenders withdrew support.

GERMAN prosecutors and police officers have raided houses and offices of five former management board members at Landesbank Sachsen in Germany and Dublin in recent days.

German regulators say they have found evidence that a large bond trade last year by Citigroup, the world’s largest financial institution, resulted in market manipulation, according to a report today.

Share price were higher midday, in line with the strong late showing on Wall Street on Friday, with Munich Re supported by a broker upgrade, while Bayer was lifted by reports that GlaxoSmithKline is eyeing its pharma division, dealers said.