12th September 2011
The publication of the long-awaited Independent Commission on Banking report had an adverse impact on banks' shares today (September 12th).
At the start of FTSE 100 trading this morning, the market fell by more than two per cent, before rallying as it digested the report's recommendations.
It advised that banks should split their investments and raise capital requirements higher than those currently set out as part of the Basel III agreement.
Barclays has seen the worst in the day's trading, shedding 1.5 per cent of its share price; while the FTSE remained down overall by 1.6 per cent at 5,132.
However, other banks fared slightly better, with Lloyd's the biggest riser on the FTSE 100 - up by 1.5 per cent to 31.5p - while RBS gained 0.8 per cent to finish at 21.67p.
This latest fall follows a loss of more than 100 points last Friday, while the resignation of European Central Bank chief economist Juergen Stark last week further added to a lack of confidence in the markets.
Posted by Andrew Johnston
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