DealZone

U.S. banking regulators partially retreat from a much-criticized proposal to impose new rules on private equity investment in troubled banks, aiming to encourage responsible investment in distressed banks. And General Electric Co (GE.N) puts its security business up for sale in an auction that could fetch about $2 billion.

For more on these stories, and the rest of the latest deals news from Reuters, click here.

Elsewhere, there’s lots of buzz this morning about comments from Adair Turner, of Britain’s Financial Services Authority, on how much of what the City does is “socially useless” and how so-called Tobin taxes on transactions may be considered — prompting big pieces in the Guardian and the FT.

Here’s what else we found in the papers (some external links may require subscriptions):

* The $10.5 million pay package for insurer American International Group Inc’s new chief executive Robert Benmosche will likely be approved formally by the U.S. government’s compensation czar Kenneth Feinberg next week, the Wall Street Journal said, citing people familiar with the matter.

* Apple Inc is getting closer to clearing hurdles to allow it to start selling iPhones in China, the Wall Street Journal said.

* China’s sovereign wealth fund China Investment Corporation (CIC) will increase new overseas investment this year by around 10 times from the previous year on signs the global economy has bottomed out, one of the organisation’s top managers said in an interview with Japan’s Asahi newspaper.