A hedge fund manager accused by the Financial Services Authority of lying to investors about "catastrophic losses" has been fined a record £3m by the watchdog.

A London hedge fund manager accused by the Financial Services Authority of lying to investors about "catastrophic losses" has been fined a record £3m by the watchdog.

A hedge fund boss who is accused of covering up losses of 390 million US dollars (£250 million) was facing a record £3 million fine from the City watchdog today.

Spain seemed to be moving closer to an official bailout yesterday as the country's borrowing costs soared and doubts over the ability of the Madrid government to prop up its ravaged banking sector multiplied.

Fears mount over Madrid's ability to shore up its banking sector

European markets remained in a fragile mood today with the euro dropping to near 11-month lows on concerns about Spain's ailing banking sector following the announcement of bailout plans for troubled lender Bankia.

House of Fraser has blamed warm weather, the consumer downturn and costs associated with opening a new distribution centre for a sharp fall in its profits last year.

Ford has reclaimed control over its famous blue oval, six years after it mortgaged the logo and a host of other assets in a desperate attempt to avert bankruptcy.

Donations of £250,000 a year will buy you dinner with David Cameron, the Conservative Party co-treasurer Peter Cruddas told undercover reporters in March. He had to resign as soon as his words – which Mr Cameron described as "completely unacceptable" – appeared in The Sunday Times.

Formula One's share flotation rolled on to the starting grid yesterday as venture capitalist CVC sold a $1.6bn (£1bn) stake in the business to three investment groups including BlackRock.

Barclays is to sell its entire $6.1bn (£3.8bn) stake in the US fund manager BlackRock, which it has held for almost three years since selling Barclays Global Investors (BGI) to the Americans.

The great and the good of the Indian business community may be fiercely protesting his innocence on the web and in interviews, but a jury of ordinary New Yorkers will decide the fate of Rajat Gupta, the former Goldman Sachs board member whose trial for insider trading got under way yesterday.

The leading London hedge fund player Blaine Tomlinson was considerably better off yesterday after the firm he founded 21 years ago was bought by Man Group for up to $82.8m (£52.3m).