Disgraced former IMF chief Dominique Strauss-Kahn has been charged with involvement in an organised vice ring that procured prostitutes for top-class clients, lawyers said. Prosecutors said the 62-year-old former Socialist finance minister and one-time presidential favourite had been released on $135,000 bail following the charges on Monday. Strauss-Kahn was called in by the investigating magistrates in the northern French city of Lille two days earlier than expected and charged with an offence that could carry 20 years in prison if he is convicted.

Taxpayers will profit on bailout, says AIG

AIG expects American taxpayers to end up with a profit of $5 billion to $10 billion on the company?s 2008 rescue when all is said and done, the chief executive of the bailed-out insurer said on Monday. The US government saved AIG from bankruptcy in 2008 with a bailout that ultimately totaled $182 billion. Earlier this month, the company finished paying off the government?s preferred interest in some of its assets.

Flights cancelled as German public workers strike

Hundreds of flights were canceled Tuesday at airports across Germany after workers walked out to join other public-sector employees in a series of strikes over pay. The ver.di union is after a 6.5% increase in pay this year for 2 million federal and municipal government employees. It has rejected a 3.3% increase over two years, saying it wouldn?t even keep pace with inflation. The walkouts are part of a program of so-called warning strikes ? short-term walkouts ? that have been held in various parts of Germany over the past week to increase pressure ahead of the next round of pay talks scheduled for Wednesday and Thursday.

LSE ends AIM market venture with TSE

The Tokyo Stock Exchange said on Tuesday it would dissolve its joint venture in Japan with the London Stock Exchange, with the TSE running the market for professional investors on its own. The two bourses launched the Tokyo AIM market in June 2009, targeting professional investors willing to invest in start-up companies with less stringent listing and disclosure requirements than on the main Tokyo bourse. The venture, owned 51% by the TSE and 49% by the LSE, has listed only one company so far.

Spanish short-term debt sale sees strong demand

Spain easily raised 2.6 billion euros ($3.45 billion) in a short-term debt sale despite recent jitters over the state of the country?s public finances. The Treasury sold 1.49 billion euros ($1.98 billion) in three-month bills with the average yield at 0.38%, down from 0.39% in the last such auction February 21. It also sold 1.08 billion euros ($1.43 billion) in six-month bills at 0.84%, up from 0.76%. Demand on Tuesday was more than triple the amount offered in the short-term category and more than five times that offered in the six-month bills.

Royal Mail Group to be privatised in Q1 of 2014

The privatisation of Britain?s state-owned Royal Mail Group will most likely take place in the first quarter of 2014, with a flotation the main preference, its chief executive said. ?I don?t think that it is impossible that we could be in a deal mode in 2013, but personally I think it is probably more likely to be the first quarter in 2014,? CEO Moya Greene said. ?My preference and I believe the government?s preference is a float,? she added.

Hon Hai to hold 11% in Sharp after share issue

Sharp will issue shares worth $808 million to Taiwan?s Hon Hai Precision Industry as part of a tie-up in liquid crystal display production aimed at reversing losses at the Japanese firm from falling TV sales. The issue of 66.9 billion yen ($808 million) worth of shares will give Hon Hai, the main manufacturer of Apple devices, around an 11% stake in Sharp, making it the top shareholder in Japan?s biggest LCD maker. Together with Sony and Panasonic, Japan?s three main TV makers expect to lose $17 billion this year.