Sir George's boost for bank business

TOSCAFUND, the hedge fund chaired by ex-RBS chairman Sir George Mathewson, is setting up a new business lending capital to banks.

It is hoped that the fund, run by former banking analyst Martin Hughes, will generate lucrative premiums by writing new business that effectively insures riskier parts of a bank's equity structure.

Lending to banks will be part of a significant expansion of its operations as it looks to raise up to 500 million for a new fund by the end of the summer after the success of its first fund last year.