Bank shares soar 10% as Basel rules relaxed

Barclays, RBS and Lloyds shares have all rocketed today on news the Basel Committee plans to water down its capital and liquidity reform package.

The banking boost has helped push the FTSE up 1% to 5404.58 as banks welcomed the less draconian set of rules and a longer phase in time for the reforms. Barclays was head of the pack up 9.06% to 344.25p while RBS rose 7.67% to 50.25p and Lloyds increased 7.58% to 71.00p. Other financials also benefited with Prudential rising 5.13% to 555.50p and Aviva up 3.97% to 369.20p. French banks are the major winner, with Credit Agricole climbing 10.7%, Societe Generale up 9% and BNP Paribas 5.8% higher. The strong showing for UK banks came despite business secretary Vince Cable warning t...