LONDON (Reuters) - The new boss of Northern Rock is putting the final touches on his business plan for the troubled bank, aiming to repay billions of pounds to the government and satisfy European regulators.

(Reuters) - Collins Stewart forecast a 30 percent dividend cut at Alliance & Leicester for 2008 and 2009, and said earnings will likely be materially weaker than was previously estimated for the bank due to a 10 percent fall in the mortgage book and a more than 60 percent fall in gross lending.