BBC UK News – "They hunt as a pack and can bring down financial systems" says the Daily Mirror, describing the hedge fund managers widely blamed for bringing down HBOS.

The decision to halt short selling of bank shares – for which hedge funds are widely blamed – earns the prime minister praise from the Independent, which says, "It is almost as if Mr Brown were Chancellor again".

But the Sun likens the ban to ringing alarm bells as the Titanic sinks.

‘Secret deal’

The Financial Times reports that news of Lloyds TSB’s takeover of HBOS left a "mood of melancholic resignation" in Scotland, where HBOS employs 17,000 people.

But the Daily Express says some MPs suspect a "secret deal" may have been done to protect Scottish jobs at the expense of employees in England.

Ahead of the Glenrothes by-election the government does not want to "alienate" Scottish voters, says the Times.

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Tags: alistair-darling, bear-trap, closure, court-of-appeal, debts, free-sources, housing-market, investment-funds, market-abuse, remorse, term-debt

International Herald Tribune- A former manager of a Citigroup Inc hedge fund has filed a complaint with a British tribunal accusing the bank of causing his fund’s demise, the Wall Street Journal reported on Saturday, citing people familiar with the matter.

In a sealed complaint filed last month with a state-run employment tribunal, John Pickett, who ran a hedge fund known as CSO Partners that specialized in corporate debt, accuses the bank of pressuring CSO to buy billions of dollars in troubled loans, the newspaper reported.

Pickett said the loans undermined CSO and led to his resignation. Citigroup called the complaint "without merit," the Journal said.

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Tags: alan-greenspan, ambiguity, curbs, fixed-income-markets, free-sources, journalism, june-14, mayhem, onshore, private-equity-investors, sexual-discrimination, subsidiaries, volatility, withdrawls