PRESS DIGEST - Financial Times - Aug 7

BIG BANKS SEEK TO LIMIT THEIR OWN RISKS

Leading banks including JPMorgan Chase, Merrill Lynch and HSBC (HSBA.L) are proposing reforms that would restrict the size and scope of their businesses in an effort to address the credit crisis. The proposals would limit the number of investors who can buy complex financial products, bring large amounts of the derivatives market to the attention of regulators and urge banks to increase spending on technology and risk management. Gerald Corrigan, managing director of Goldman Sachs, who led the study on which the proposals are based, explained that although the reforms would be expensive, "those costs would be miniscule compared to the hundreds of billions of dollars of writedowns experienced by financial institutions".

DEALERS CUT CAR PRICES AS SALES FALL