Part-nationalised British lender Lloyds Banking Group is set to bear the scars of reckless lending at its HBOS business today as it reports huge write-downs on bad debts.

The FTSE 100 Index crossed the 4600 threshold today as the London market gunned for a record-breaking 12th positive session in a row.

The recipient of a $45bn (€32bn) infusion from the US government, Citigroup Inc says it will place strict limits on management’s compensation, including no severance for its top five executives.

Banking giant Citigroup today said it planned to shed 52,000 jobs with losses falling “particularly heavily” in London and New York.

A new panel of City luminaries will help London’s financial services sector tackle the impact of the credit crunch and competition from rival financial centres, the British Treasury said today.

Citigroup’s embattled chairman and chief executive Charles Prince, beset by billions of dollars in losses from investing in bad debt, has retired, the company said tonight.