investment banks

The country's major banks are sitting on £40bn of undeclared losses that are stopping them lending to businesses and households, a report has claimed.

US bank stress tests last week have boosted the outlook for the global banking sector, said John Yakas, manager of the Polar Capital Financial Opportunities fund, who urged investors not to miss the rally.

Britain's leading banks are facing allegations of mis-selling complex interest rate protection protection products to hundreds of small businesses.

Barclays shares have rallied following the news the UK bank has accepted €8.2bn in three-year loans from the European Central Bank's latest lending programme.

Royal Bank of Scotland (RBS) shares have delivered an impressive return of 60% in the last three months amid a resurgence in risk appetite.

Lloyds Banking Group has reported a pre-tax loss of £3.5bn for 2011, while warning shareholders to prepare for more pain as it forecasts a decline in revenues for 2012.

European banks could seek up to €1trn in extra funding from the European Central Bank's (ECB) emergency funding scheme in the February auction.

Investors who took advantage of a €7.5bn rights offering by troubled Italian bank UniCredit are reaping the benefits as the company has delivered the largest equity return of any stock in the Euro Stoxx 50 index since 10 January.

Bank of America shares surged almost 6% on the opening bell on Wall Street after the bank posted net income of $2bn for the fourth quarter of 2011, despite its investment banking arm booking a loss.

Eurozone bank dividends are poised to fall below the levels seen after the collapse of Lehman Brothers, as regulators push for lenders to bolster capital.