BoA bailout repayment boosts FTSE

Banks led the FTSE to an early gain in Thursday trade following reports Bank of America (BoA) is poised to repay its $45bn US Government bailout.

The index advanced 38.55 points, or 0.72%, to 5,361.70 with Barclays and Lloyds leading the charge. Elsewhere, strong commodity prices boosted miners. BoA, which received the taxpayer handout last year to help it cover the costs of acquiring Merrill Lynch and to stave off collapse, is preparing to pay back all the money it received in a bid to free itself from restrictions on executive pay. Barclays rose more than 15 points, or 5.19%, to 312.95p as reports emerged it will award its 22,000 investment bankers pay increases of up to 150%. Lloyds Banking Group gained 4.12% to 55.29p. ...