IndyMac Bancorp, one of the largest banks to fail as a result of the subprime mortgage crisis, is close to being sold to a consortium of private equity and hedge fund firms in a complex deal partly financed by the federal government, the New York Times reports.

The basic economics of a hike in mortgage rates and a bank's inability or unwillingness to modify terms have hurt many American families over the past year.

Belgian banking and insurance group KBC said on Monday it expects a quarterly loss of 900 million euros ($1.28 billion) on credit portfolio writedowns.

GMAC Financial Services' transition into a bank holding company should buy the troubled lender some time to turn itself around, but the cost is a loss of control for its owners General Motors and Cerberus Capital Management.

Wednesday: Christmas Eve is short on economic cheer. Unemployment claims jumped by 30,000 to a 26-week high. New U.S. durable-goods orders fell 1 percent in November, which was less severe than feared — but it followed a sharply revised drop in October orders. CNBC heard from experts who predict a slow awakening beginning after H2 2009 — and one analyst who says we're already in a bull market (!).

Austria's Hypo Group Alpe Adria, majority-owned by Germany's BayernLB, will get 900 million euros ($1.3 billion) in non-voting participation capital from the government, Austria's finance ministry said on Tuesday.

A drop in gasoline prices gave consumer sentiment an unexpected lift, but the data gloom continues: the recession deepened and both new and existing home sales fell by a record amount in November. Investors' flight to quality goes on; retail stores are eerily quiet; and reseachers at Challenger are predicting more than 1 million job cuts next year. But one expert sees a spark that'll start the economic thaw in 2009.

The European Union on Tuesday approved bank rescue measures for many of the continent's major economic powers, clearing the way for cash injections and loan guarantees expected to help lenders through the financial crisis.

Italian authorities won permission from the European Commission on Tuesday for an aid package for their banks caught up in the credit crunch.

The Federal Reserve Board on Monday approved commercial finance firm CIT's bid to become a bank holding company, clearing the way for it to access up to $2.5 billion in capital from a federal financial rescue program.

Lehman Brothers Monday won bankruptcy court approval to sell its prized investment management division, including Neuberger Berman, to a group led by Neuberger's management.

After receiving billions in aid from U.S. taxpayers, the nation's largest banks say they can't track exactly how they're spending the money or they simply refuse to discuss it.

Singapore's DBS Group, Southeast Asia's biggest lender by assets, said on Monday it plans to raise about $2.74 billion through a rights offering to shore up its capital.

The Irish government will invest $7.68 billion in the country's three main lenders, taking majority control of  Anglo Irish Bank after a loan scandal there rocked an already beleaguered industry.

Belgium's King Albert consulted political leaders on Saturday after the government collapsed for the third time in a year following its botched attempt to bail out financial group Fortis.