Bloomberg reports that, according to a survey undertaken for the National Association for Business Economics, the proportion of US economists who are now forecasting a recession in the US this year has more than doubled in some three months - to 45%. The poll sought the views of 49 professional forecasters between January 25th and February 13th.

The Sunday Times reports that HSH Nordbank is to take legal action against UBS to recover over $740m the bank says it lost on 'mis-sold' subprime lending-related investments sold to it by UBS.

Bloomberg reports that Sandford C. Bernstein analyst Brad Hintz has cuts his first-quarter earnings estimates of four of the big US securities firms, citing the falling off of fixed income and investment banking revenues in recent weeks. Hintz now feels that Morgan Stanley is likely to report some 12% less profits than he forecast, with his forecast also down for Bear (41%), Lehman (42%) and Goldman (45%).

Financial News reports that European investment banking has got off to its worst start to a year since 2003, with a drop off in M&A and debt and equity underwriting and poor hedge fund returns. The newspaper says that there is 'little hope of recovery in the next 10 months'.

Thomson Financial reports that former Credit Suisse CEO Oswald Gruebel appeared to be having a pop at management at rival firms when he recently said that 'significant losses, particularly in the financial sector, are simultaneously announced with capital hikes, allowing them (management) to continue to invest in the very same business they have just proven to not understand'.

Associated Press reports that Citi has provided a $500m credit line to its troubled $10bn fixed income hedge fund Falcon, which has now been taken onto the firm's balance sheet.

Reuters reports that Helmut Linssen, the Finance Minister of German state North Rhine-Westphalia (which owns around 40% of troubled WestLB), has said that the clean-up of the bank is likely to take between 3 and 5 years. In an interview with German newspaper Welt am Sonntag Sunday, Linssen said that 'staying patient and rational is necessary. Otherwise all of those involved will lose a lot of money'.

Silicon.com reports that investment banks have been busy canning or postponing large-scale IT programs. The demand for IT staff in investment banking is said to have fallen away, although IT professionals are still in demand by asset managers and hedge funds.

Reuters reports that Allianz has said that it is 'actively looking' to buy asset backed securities and leveraged loans whose prices have fallen due to the recent market turmoil. The news agency also reports that Dresdner Kleinwort boss Stefan Jentzsch is predicting that his unit's revenues will be stable in 2008 as it focuses on core areas.

The New York Post reports that D.B Zwirn & Co is to liquidate two of its biggest hedge funds, after investors asked to withdraw $2bn, or almost half of the funds' assets.

Bloomberg reports that Deutsche CEO Josef Ackermann has said that firms must do more to improve transparency and flag up risks. Speaking at a conference in Dubai, Ackermann said that 'every firm has to create clarity for itself, the market and the relevant regulatory authorities, with regard to its exposure. Every market participant has to be clear about its contingent liabilities'.

Financial News reports that, despite concerns that RBS executives would clean up and take all the top investment banking jobs, several ABN AMRO staff have done well following the recent merger of the firms' wholesale banking operations. Tom Willett, previously co-European head of M&A, has got the top global job in the combined unit. And Rutger van Nouhuys and Simon Hargreaves, both from the ABN side, have been given leadership roles.

The Wall Street Journal reports that David Bermingham, Giles Darby and Gary Mulgrew, the so-called 'NatWest 3', have been sentenced to 37 months each in clink. The men pleaded guilty to one count of wire fraud in connection with the Enron affair.

Finally, a bit of news on two under fire bosses, both of whom have hung onto their jobs by their fingertips in recent weeks. Reuters reports that UBS has denied that chairman Marcel Ospel will definitely leave after serving out another year. A spokesperson for the bank said nothing had yet been decided. And Bloomberg reports that SocGen CEO Daniel Bouton's offer to resign over that little $7.1bn rogue trading scandal is no longer on the table. In an interview with French newspaper Les Echos, Bouton said that twice he had offered to resign, and twice his offer of resignation had been rejected.

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