Swiss Re said insured losses soared to $50 billion for the industry in 2008, making it the second costliest year ever.

HSBC Holdings shares fell over 5 percent on Thursday to extend a 6-day retreat to 16 percent as concern mounted it could raise capital or cut its dividend to keep its balance sheet advantage.

American International Group Inc Chief Executive Edward Liddy has asked for more time before meeting with U.S. Rep. Elijah Cummings, who has been critical of the insurer and management in recent weeks.

Spanish banking group Santander won permission from EU competition authorities on Thursday to acquire assets including deposits and branches of British mortgage lender Bradford & Bingley .

* Technical performance should see further improvements

* Private equity Hellman & Friedman pays off loan with stake

The European Commission on Thursday approved Belgium's emergency 3.5 billion euro ($5 billion) recapitalisation of KBC , aimed at helping the banking and insurance group through the financial crisis.

The Federal Reserve bought $2.4 billion of Fannie Mae , Freddie Mac and Federal Home Loan Banks debt in permanent coupon purchases on Thursday in an ongoing effort to lower mortgage rates.

Citigroup Inc has boosted its lending after receiving government money and has set up a committee of senior executives to make sure it is using those funds properly, according to an internal memo obtained by Reuters.

* BNP Paribas says its part of Fortis deal cannot proceed