A US housing regulator is set to take two of the world’s biggest banks to trial on Monday to try to recoup more than $1bn (€955m) in damages over mortgage bonds sold to government-run mortgage finance companies ahead of the 2008 economic crisis.

The axed chief executives of America’s mortgage giants Fannie Mae and Freddie Mac will be barred from severance payments of up to £12m (€15.1m).

US mortgage giants Fannie Mae and Freddie Mac are expected to be taken over by the government as early as this weekend, it emerged today.

Wall Street scored a moderate gain after a volatile session today that saw the major indexes ratchet up and down on the see-sawing price of oil and mixed feelings about the financial sector.