Bloomberg reports that, according to three unnamed 'people familiar with the matter', China Development Bank and Commerzbank are in the mix to acquire Germany's Dresdner Bank. Commerzbank is thought to be in pole position for a deal, however, as the German authorities are unlikely to want to see one of its own top financial institutions fall into the hands of a foreign rival.

The Wall Street Journal reports that HSBC has reported a 29% fall in first-half profits to $7.7bn, after impairment charges for bad loans rose 59% to a massive $10.1bn. And Reuters reports that although profits at HSBC's investment banking unit fell more than a third in the period, executives feel that the business is holding up well in the current difficult environment. The news agency quotes Stuart Gulliver, CEO of HSBC's global banking and markets business, who said: 'Since the financial crisis began a year ago, we've produced a profit before tax of about $4.7bn, after writing off $6bn. I'll leave that to you to compare to other people, but I think it's a reasonably strong performance against a very turbulent market situation'.

The Financial Times reports that French bank Societe Generale has posted a 63% fall in its second-quarter earnings. Net profit fell to $1bn. The firm's securities unit posted a $288m loss in the period, after credit derivative and fixed income-related writedowns. In the meantime, The Wall Street Journal reports that French prosecutors have now filed preliminary charges against Thomas Mougard, rogue trader Jerome Kerviel's former assistant. Mougard is accused of 'complicity to introduce fraudulent data into computer systems'.

The Times reports that Crispin Odey, founder of hedge fund Odey Asset Management, paid himself a $53.5m bonus last year, after his firm profits tripled to some $108.4m.

Finally, The New York Times reports that Barclays Capital has made some key hires from Merrill Lynch and Deutsche Bank into its energy banking team in Houston, as the firm continues to beef up its M&A business in the US.

Please use the 'E-Mail' button immediately under the article title to send this item to a friend'.

Press here to comment on this story >>

Today in Life: Lars and the Real Girl >>

TODAY

• Top Firm Really On The Ropes Now
• My Firm's Hiring Freeze Is Tip Of The Iceberg
• The 'Doughnut' Bonus Poll - The Results

THIS WEEK

• Another Major Firm's Going Belly Up
• My Firm's Hiring Freeze Is Tip Of The Iceberg
• Top Firm Imposes Hiring Freeze