Banco de Credito e Inversiones SA (BCI.SN), Chile's third largest private bank in terms of loans, said in a filing with the local banking overseer it agreed to purchase Spanish Bankia SA's (BKIA.MC) City National Bank of Florida for $882.8 million.

Citibank has asked a U.S. district court to confirm that its Argentine banking unit isn't bound by a ruling that bars the Argentine government from making payments on bonds it issued under New York law.

Drugmaker Forest Laboratories received a subpoena earlier this month from U.S. prosecutors requesting documents relating to its small-selling lung disorder product, the Tudorza Pressair inhaler, the company said in a filing.

Germany's top banking supervisor urged the U.S. to abandon its insistence on forcing big foreign banks to operate through separately capitalized subsidiaries, warning it could trigger a chain reaction in Europe and other jurisdictions that could fragment world financial markets.

Even after the financial crisis and amid debt worries, the U.S. dollar's status as the world's go-to currency doesn't appear to be in serious jeopardy. 

U.S. stocks traded in the red but at the session's best levels on Friday afternoon following another volatile session for Asian markets.

Germany's top banking supervisor urged the U.S. to abandon its insistence on forcing big foreign banks to operate through separately capitalized subsidiaries, warning it could trigger a chain reaction in Europe and other jurisdictions that could fragment world financial markets.

Fitch Ratings removed Ally Financial Inc. from a negative ratings watch after the government-owned auto lender reached a deal with its Residential Capital mortgage subsidiary and the unit's creditors that will help the company avoid litigation.

The Chilean government's recently created Environmental Superintendency halted all construction operations at Barrick Gold Corp.'s (ABX, ABX.T) Pascua-Lama project that reaches across the Andes Mountains into Argentina, and fined the company $15.8 million for not meeting norms stipulated in the environmental approval it received in 2006.

New York Attorney General Eric Schneiderman said there is mounting evidence that Bank of America Corp, Wells Fargo and Co and other banks violated the terms of a settlement designed to end mortgage servicing abuses.

U.S. stocks traded in the red but near the session's best levels on Friday afternoon following another volatile session for Asian markets.

AMR Corp. (AAMRQ) is seeking court approval to buy back more than $1.2 billion in debt from noteholders, as the American Airlines parent continues to march toward finalizing its merger with US Airways Group Inc. (LCC).

The crisis that has hit Italy's third-largest lender Banca Monte dei Paschi di Siena might not be an isolated case, Monte Paschi Chairman Alessandro Profumo said on Friday.

Spain's government approved a plan to grant residency permits to foreigners who buy high-end homes, a step meant to breathe life into the country's moribund housing market.

Spain's Bankia SA (BKIA.MC) is close to selling City National Bank of Florida to Chilean bank Banco de Credito e Inversiones SA (BCI.SN) for close to $900 million, according to people familiar with the situation.

BP PLC (BP.LN) and partners Reliance Industries Ltd. (500325.BY) and NIKO said Friday they had made a significant gas and condensate discovery in the KG D6 block in the Krishna-Godavari field off the eastern coast of India where the partners are trying to boost declining gas output.

Spain's Bankia SA (BKIA.MC) is close to selling City National Bank of Florida to Chilean bank Banco de Credito e Inversiones SA (BCI.SN) for close to $900 million, according to people familiar with the situation.

Commerzbank AG (CBK.XE) Chief Executive Martin Blessing, who will fully participate in the bank's capital increase that is under way, will buy new shares worth about EUR170,000, according to a Dow Jones Newswires calculation.

U.K.'s FTSE 100 index dropped on Friday, with mining firms adding pressure as metals prices turned south and with banks extending the prior day's losses.

European stock markets added to the prior day's sharp losses Friday, tracking stocks lower in the U.S., with better-than-expected economic data failing to offset concerns about a possible end to the U.S. stimulus program.