Morning Markets - Banks boost FTSE

Banks pushed the FTSE higher by 0.55% to 5380.35 on news the Basel Committee proposed to water down its capital and liquidity reform package.

Banking stocks accounted for the top three positions, with Barclays taking poll position, up 18.20 points (5.77%) at 333p. Lloyds gained 3.20 points, (4.85%) to 69p, while Royal Bank of Scotland group was trading at 48p, up 1.60 (3.43%). The strong showing for the banks came despite business secretary Vince Cable warning today the Government would be carefully scrutinising their bonuses and dividend payments in a bid to ensure spare capital is used to kick-start consumer lending.  Meanwhile, hotel operators were in the doldrums, with InterContinental Hotel Group the biggest blue ch...