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The agency’s hidden tape recorders turned up almost nothing about communism.

But they did reveal embarrassing details about King’s sex life — details the FBI was able to use against him. Video Watch how the FBI tracked King’s every move »

The almost fanatical zeal with which the FBI pursued King is disclosed in tens of thousands of FBI memos from the 1960s.

The FBI paper trail spells out in detail the government agency’s concerted efforts to derail King’s efforts on behalf of the civil rights movement.

The FBI’s interest in King intensified after the March on Washington in August 1963, when King delivered his “I have a dream speech,” which many historians consider the most important speech of the 20th century. After the speech, an FBI memo called King the “most dangerous and effective Negro leader in the country.”

The bureau convened a meeting of department heads to “explore how best to carry on our investigation [of King] to produce the desired results without embarrassment to the Bureau,” which included “a complete analysis of the avenues of approach aimed at neutralizing King as an effective Negro leader.”

The FBI began secretly tracking King’s flights and watching his associates. In July 1963, a month before the March on Washington, FBI Director J. Edgar Hoover filed a request with Attorney General Robert Kennedy to tap King’s and his associates’ phones and to bug their homes and offices.

In September, Kennedy consented to the technical surveillance. Kennedy gave the FBI permission to break into King’s office and home to install the bugs, as long as agents recognized the “delicacy of this particular matter” and didn’t get caught installing them. Kennedy added a proviso — he wanted to be personally informed of any pertinent information.

While King did have associates who had been members of the Communist Party, by all accounts they severed those ties when they started working in the civil rights movement. What’s more, the FBI bugs never picked up evidence that King himself was a Communist, or was interested in toeing the party line.

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When King learned he would be the recipient of the Nobel Peace Prize in 1964, the FBI decided to take its harassment of King one step further, sending him an insulting and threatening note anonymously. A draft was found in the FBI files years later. In it the FBI wrote, “You are a colossal fraud and an evil, vicious one at that.” The letter went on to say, “The American public … will know you for what you are — an evil, abnormal beast,” and “Satan could not do more.”

Warning investors on Tuesday that conditions had deteriorated dramatically in recent weeks, Chief Executive Josef Ackermann said the bank would write down 2.5 billion euros ($3.9 billion) in the first quarter on the value of loans it has committed to as well as other investments.

The news was overshadowed by rival UBS, which unveiled $19 billion of additional writedowns on U.S. property and related assets, pushing it $12 billion into the red in the first quarter and forcing it into a fresh hunt for funds.

Deutsche Bank, the country’s biggest financier, had been seen as one of the winners in the crisis that fatally wounded rival Bear Stearns and toppled other Wall Street titans.

But as conditions in global markets worsen, the bank is looking increasingly vulnerable.

The new write-down is equivalent to more than a third of its 2007 net profit and more than all the markdowns the bank made last year.

In the past fortnight, some banks, including HSBC, have pulled out of the $85 billion (£42 billion) a year US student loans market, fuelling anxiety that the turmoil that hit debt markets on Wall Street last summer is spilling over into the wider economy and making credit more difficult to secure for ordinary American households.

In the US, many undergraduates take out a federal guaranteed loan and top up their financial needs with a private loan from lenders such as Bank of America, JPMorgan Chase and Citi-group. In the academic year 2005-06, $17 billion in private student loans was used to finance higher education.

Banks have become reluctant to offer private student loans because worsening credit conditions have meant that they cannot package up the loans and sell them on.

Although the brightest students who win places at America’s rich Ivy League universities will be affected less because of generous bursaries – which do not have to be repaid – less able students applying to other institutions are expected to face difficulty in securing private loans to fund their study. At one end of the field is Harvard University, with $34 billion of endowments, and at the other are many community colleges and low-tier universities with limited resources.

According to the March Prospective Plantings Report, farmers intend to plant about 86 million acres of corn this year, down 8 percent from 2007, when the amount of corn planted was the highest since World War II.

Analyst Heather L. Jones said in a note to investors if the USDA estimate proves accurate, the year may produce just 200 million bushels of corn. That, she said, wouldn’t be enough to meet demand, given current export and feed demand trends and higher ethanol demand. Both ethanol and animal feed are made with corn.

“That is an untenable inventory demand, in our opinion,” she said. “Consequently, we believe demand must be rationed or there needs to be a big supply response from other growing regions of the world.”

The plantings report caused nervousness among meat producers and food makers who spent last year struggling to offset higher corn costs. Even though acreage was high, demand for ethanol and need overseas pushed prices to record levels.

Merrill Lynch said statements with prices for the securities would be posted Monday night, and could be viewed by clients with online access to statements.

UBS decided last week to price clients’ holdings of the securities at a discount to reflect clients’ inability to sell the securities due to failures in regularly scheduled auctions. Previously, clients, though unable to sell the securities, were told they were valued at par.

Merrill’s decision to continue pricing most of the securities at par could hold off an eruption of anger from clients who are already frustrated at being unable to sell their securities. But it carries the risk of being criticized for ignoring a common practice of discounting illiquid securities.

That’s roughly on a par with the Russian economy. More than double the market value of Exxon Mobil Corp. About nine times the combined wealth of Warren Buffett and Bill Gates.

Yet $1 trillion is the amount of defaults and writedowns Americans will likely witness before they emerge at the far side of the bursting credit bubble, estimates Charles R. Morris in his shrewd primer, “The Trillion Dollar Meltdown.” That calculation assumes an orderly unwinding, which he doesn’t expect.

“The sad truth,” he writes, “is that subprime is just the first big boulder in an avalanche of asset writedowns that will rattle on through much of 2008.”

Agencies such as the National Security Agency have bought servers on which Google-supplied search technology is used to process information gathered by networks of spies around the world.

Google is also providing the search features for a Wikipedia-style site, called Intellipedia, on which agents post information about their targets that can be accessed and appended by colleagues, according to the San Fransisco Chronicle.

The contracts are just a number that have been entered into by Google’s ‘federal government sales team’, that aims to expand the company’s reach beyond its core consumer and enterprise operations.

In the most innovative service, for which Google equipment provides the core search technology, agents are encouraged to post intelligence information on a secure forum, which other spies are free to read, edit, and tag – like the online encyclopedia Wikipedia.

Depending on their clearance, agents can log on to Intellipedia and gain access to three levels of info – top secret, secret and sensitive, and sensitive but unclassified. So far 37,000 users have established accounts on the service, and the database now extends to 35,000 articles, according to Sean Dennehy, chief of Intellipedia development for the CIA.

“Each analyst, for lack of a better term, has a shoe box with their knowledge,” Mr Dennehy was quoted as saying. “They maintained it in a shared drive or Word document, but we’re encouraging them to move those platforms so that everyone can benefit.”

The collection of articles is hosted by the director of national intelligence, Mike McConnell, and is available only to the CIA, the FBI, the National Security Agency, and other intelligence agencies.

Google’s search technology usually rates a website’s importance by measuring the number of other sites that link to it – a method that is more problematic in a ‘closed’ network used by a limited numbr of people. In the case of Intellipedia, pages become more prominent depending on how they are tagged or added to by other contributors.

As well as working with the intelligence agencies, Google also provides services to other US public sector organisations, including the Coast Guard, the National Highway Traffic Safety Administration, and the National Oceanographic and Atmospheric Administration.

Often, the contract is for something as simple as conducting earch within an organisation’s own database, but in the case of the Coast Guard, Google also provides a more advanced version of its satellite mapping tool Google Earth, which ships use to navigate more safely.

At the heart of the proposals, agreed on Wednesday by Hank Paulson, US Treasury secretary, and Alistair Darling, UK chancellor, is the creation of a body made up of senior Treasury and regulatory figures from London and Washington.

Mr Brown and Mr Bush will discuss greater UK-US co-operation in tackling the financial crisis when they meet at a Nato summit in Bucharest this week and a Washington summit next month.

Whitehall officials say the new UK-US working group, whose membership and terms of reference are being finalised, will seek to establish a common approach on how to respond to the crisis before next month’s meetings of the Group of Seven, the International Monetary Fund and the World Bank.

However, officials say that, given the huge role that London and New York play in financial markets, the significance of the new body will go beyond that.

“We have both been seised of the fact that we need to do something to respond to the financial market turbulence, that we need to generate a shared agenda in the run-up to the spring meetings,” said a senior UK Treasury official.

According to UK Treasury officials, the new body will examine the role of the credit ratings agencies in evaluating risk, amid concerns that they did not fully appreciate the exposure of mortgage-based products to a fall in the housing market.