Britain's second-biggest bank may also be forced to sell off its insurance brands, which include Direct Line, Churchill, Privilege and Green Flag, which have a strong insurance presence in Yorkshire and employ more than 3,000 people in Leeds, Sheffield, Doncaster and Pudsey.

Chief executive Sir Fred Goodwin also announced another £5.9bn of investment write-downs linked to the credit crunch.

Sir Fred, whose £4.2m pay package last year included a £2m bonus, said that the £12bn capital-raising was the "right thing to do" and dismissed calls for his resignation.

Three Yorkshire entrepreneurs have made their fourth acquisition in four years by snapping up plumbing and electrical firm Simpson & Gregg.

Duncan Syers, Chris Corkhill and Paul Venable bought the Northumberland firm for an undisclosed seven-figure sum in a buy-in management buy-out deal.

The trio, who have not formed a company for their holdings, will add Simpson & Gregg to the mechanical, electrical and social housing electrical contracting firms they own already.

Simpson & Gregg employs 120 engineers, plumbers and administrative staff.

Tuesday

Bradford & Bingley reported strong demand for buy-to-let mortgages, but warned that arrears are rising as borrowers struggle to keep up with their mortgage repayments.

Britain's biggest provider of buy-to-let mortgages has been hit hard by worries over higher funding costs and a slowdown in the UK mortgage market.

The group said that lending volumes in the first quarter were in line with expectations, but lower than last year following the decision to ask borrowers for larger deposits and higher interest charges on new deals.

The group said that demand for buy-to-let remains robust with landlords reporting strong tenant demand and rising rents.

Kingsmill and Ryvita maker Associated British Foods reported a 5 per cent increase in interim profits, thanks to strong sales at its high fashion retailer, Primark

The company's grocery, ingredients and agriculture divisions also contributed to the £282m profits during the six months to March 1.

But the results were held back by a sharp fall in profits at ABF's sugar arm, which has suffered because of cuts in the EU sugar quota and the bad weather.

Primark revenues increased 25 per cent, to £899m, and the group now has a 10 per cent share of the market by volume – making it the UK's second largest clothing retailer behind Marks & Spencer.

Wednesday

Credit lender Cattles is asking shareholders for £200m through a deeply-discounted rights issue in order to raise enough cash to win a banking licence.

The group needs a licence to enter the savings market and raise £1bn, in a move which would considerably reduce its reliance on expensive wholesale funding.

The Batley-based company stressed that the move was not designed to help to shore up the group's finances – the company does not have liquidity problems and it has funding in place until the end of 2009.

The cash is needed to persuade the Financial Services Authority that it has the necessary funds to win a banking licence. In order to grant a banking licence, the FSA would need higher levels of capital adequacy than Cattles has.

The group hopes to raise £1bn by the end of 2010.

One of Britain's leading residential property services companies said it had chalked up a "resilient" performance against the backdrop of a challenging housing market.

York-based LSL Property Services, which operates under the Your Move and Reeds Rains estate agency brands, said that it was hard to predict how the property market would fare for the rest of the year.

In the first quarter of 2008, the company revealed, group turnover was down by three per cent, while surveying turnover was up by 15 per cent. Estate agency and financial services turnover dropped by 16 per cent.

Thursday

Britain's biggest housebuilder, Persimmon, reported a rapid deterioration in the housing market over the past three weeks as a direct result of mortgage lenders turning down first-time buyers.

York-based Persimmon said that customers wanted to buy a Persimmon home, but they could not get a mortgage. This is particularly hitting first-time buyers who are trying to borrow 95 per cent of the home's value.

Persimmon's chief executive, Mike Farley, said that he had never seen such dire conditions for people looking to borrow money to buy a home.

Persimmon said that sales in 2008 fell 24 per cent year-on-year, to £1.37bn, as the credit crisis bit and the group has decided to stop opening new sites.

Shares in Punch Taverns, the UK's biggest pub company, dived on the news that customers are spending less on beer and food as they cut back.

The group is backing an industry-wide campaign to ban Chancellor Alistair Darling from every pub in the land. It said it was extremely disappointed about the alcohol duty rises imposed in March's Budget. These included 4p on a pint of beer and 55p on a bottle of spirits.

Punch's regional operational director for Yorkshire, Mark Chapman, said the Government has failed to recognise the important role the pub plays in the community.

Friday

Norwich Union parent Aviva expects the UK market to slow down over the coming months as people cut non-essential spending such as insurance.

The group, which ruled itself out of the bidding for Royal Bank of Scotland's insurance businesses, said that it expects the UK life insurance market to grow between zero and 5 per cent in 2008, thanks to a recovery in the second half.

Nic Nicandrou, finance director of Norwich Union Life based in York, said the group expects the market to be flat by the end of the first half and then experience growth in the second half.

The group is targeting older people who can afford to contribute to a pension or savings contract and is seeing good growth of annuities and regular premium pensions.

Aviva beat forecasts with a 5 per cent rise in first-quarter sales, helped by growth in the US and Asia.

Medical equipment company Dawmed Systems reported a strong start to 2008 and said first-half sales should exceed expectations.

The Rotherham-based group hopes to return to the black this year following a disappointing 2007 when there was a significant loss.

Chairman Kevin Gilmore told shareholders at the annual general meeting that the group had seen a substantial increase in turnover this year.

Dawmed blamed a lack of spending by the NHS, investment in IT and litigation costs for a £578,000 loss last year.

Mr Gilmore said that a number of new contracts and the largest order book in the group's history should help it return to profit
in 2008.