U.S. activist hedge fund Atticus Capital has lost more than $5 billion this year, a source familiar with the matter told Reuters, after its funds were hit by heavy falls in financial stocks.

A 5.9 billion pound ($11.4 billion) writedown on risky assets sent Royal Bank of Scotland to a first-half loss of 691 million pounds -- better than feared, but still one of the biggest losses in UK history.

Commonwealth Bank of Australia, the nation's second-biggest lender by assets, said it was in talks to buy ABN AMRO's Australia and New Zealand operations, as it looks to strengthen its institutional banking and markets business.

National Australia Bank, the nation's top lender, said on Friday it was in talks to buy ABN AMRO's operations in Australia and New Zealand which was being sold following ABN's acquisition by a banking consortium including Royal Bank of Scotland.