Mathematics at Oxford University has been boosted by the appointment of Xunyu Zhou as Nomura Professor of Mathematical Finance. Professor Zhou is an expert in behavioural finance: examining why, for instance, city traders don’t always make rational decisions.

Fannie Mae, the mortgage finance giant trying to fix its accounting after overstating profit by $6.3 billion, plans to release its 2006 annual report next quarter and update its financial statements completely by February, The Washington Post reported.

Freddie Mac, the No. 2 U.S. mortgage finance company, on Thursday reported an unexpected net loss of $211 million for the first quarter, citing a souring outlook for mortgage credit risk that widened credit spreads, reported Reuters.

Prudential Financial, the US insurance group, announced on Wednesday that it was going to shut down its small stock research and sales business, which some analysts called "a distraction" with little value. This closure will result in the loss of about 420 jobs. This will be the biggest business breakage recently occurred.