Reuters reports that the number of US firms launching distressed debt funds (BlackRock, Metropolitan West Asset Management, Pacific Investment Management, PIMCO, Third Avenue, Trust Company of the West) suggests that the smart money thinks that the worst of the year-long credit crisis may be behind us.

The news agency also reports that Barclays President Bob Diamond has said that his firm is unlikely to buy a big investment banking rival. Diamond said that 'we always look at every opportunity that's out there, but it's unlikely you would see us in that space. We lead first with the organic'.

The Financial Times reports that Citi confirmed Friday that it is to move its equity research unit back into its institutional securities business. 'Chinese Walls' will be preserved between the research unit and the investment bank.

Bloomberg reports that former Refco President Tone Grant was sentenced to 10 years in jail Thursday for his part in the $2.4bn scandal that led to the fall the firm. Grant was found guilty of conspiring to hide tens of millions of dollars of trading losses from clients over a period of several years. Philip Bennett, Refco's former CEO, was jailed for 16 years earlier this month for his role in the scandal.

The New York Post reports that, according to unnamed 'people familiar with the matter', Jim Simons' $8bn Medallion fund is on track to deliver double-digit gains again this year. The fund, which is the oldest of the three Renaissance Technologies funds, is said to be up 48% in the year through the end of July.

Royal Bank of Scotland posted its first loss in 40 years Friday. The firm's first-half loss came in at $1.35bn, after $11.6bn in credit market writedowns. CEO Fred Goodwin said that 'it has been a chastening experience and reporting a pre-tax loss of $1.35bn is something I and my colleagues regret very much'.

The Times reports that pre-tax profit over at Schroders fell some 26% to $262m in the first-half, after the firm wrote down seed capital and the value of fixed-income investments.

Bloomberg reports that Societe Generale has closed its four-person New York unit that traded shares in companies involved in takeovers. The fall off in M&A activity has apparently meant that they didn't have much to do!

Finally, Financial News reports that analysts at Credit Suisse have estimated that UBS will writedown an additional $5.1bn when it reports its second-quarter earnings Tuesday. The firm is also expected to reveal that revenues from equities fell 40% on the same period in 2007, and that M&A and fixed income revenue dropped 20%.

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