Morning papers: Top Fed economist slams ‘incoherent’ ECB

The US Federal Reserve (Fed) has launched a blistering attack on the European Central Bank (ECB), calling for quantitative easing across the board to lift the eurozone fully out of its slump, reports the Daily Telegraph.

In a rare breach of central bank etiquette, a paper by the Richmond Fed said the ECB is hamstrung by institutional problems and acts on the mistaken premise that excess debt is the cause of the eurozone crisis when the real cause is the collapse of growth, which has, in turn, spawned a debt crisis that could have been avoided.

House prices rise at fastest rate in three years, says Nationwide

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House prices rose at their fastest pace in three years in July as the property market continued to gain momentum, according to figures from the UK”s biggest building society, reports the Guardian.

Nationwide’s latest snapshot of the market showed a 0.8 per cent rise in prices during the month, bringing the annual rate of increase to 3.9 per cent. This was the biggest year-on-year increase since August 2010, and is markedly up on the 1.9 per cent annual rate of inflation recorded by the society in June.

Euro money market funds shed assets

Euro money market funds have shed more than a tenth of their cash under management as low bank lending rates and lingering political uncertainty in the eurozone prompt investors to take their money elsewhere, reports the Financial Times.

Twenty-two of the biggest euro-denominated funds suffered a 12 per cent drop in assets under management to €66.1bn (£57.8bn) in the second quarter until the end of June, according to new figures from Moody’s.

Banks take £18bn hit over PPI sales fiasco

Banks have agreed to pay the equivalent of almost £400 to every adult in Britain as the country’s biggest mis-selling scandal continues to grow, reports The Times.

Compensation payments for Payment Protection Insurance reached £18.4bn yesterday - twice the cost of the Olympics. The banking sector ignored warnings about the way it sold PPI products for almost a decade.

Former Goldman Sachs trader found guilty of mortgage fraud

A former Goldman Sachs trader nicknamed “Fabulous Fab” has been found liable of six fraud claims in one of the most high-profile cases related to the credit crunch, reports the Guardian.

Fabrice Tourre was described as the face of “Wall Street greed” by Securities and Exchange Commission lawyers during a civil case brought by federal regulators in response to the 2007 mortgage crisis.

Factories leap into action as loose money gets to work

Manufacturers are on the march on both sides of the Atlantic, with the strongest production for two years helping to buoy stock markets, reports The Times.

A gauge of factory output in Britain rose to its highest level since March 2011, while America’s equivalent measure rose to its strongest level since June of the same year.