Lloyds

UK banks remain at risk of very serious problems, according to Charles MacKinnon, chief investment officer at Thurleigh Investment Managers.

Invesco Perpetual's Neil Woodford is considering snapping up shares in Lloyds Banking Group when the government begins selling its stake, according to reports which the fund group has denied.

Credit ratings agency Moody's has upgraded its outlook for British banks from negative to stable, saying they are strong enough to withstand another financial crisis.

The government has formally started the process of offloading its stakes in Royal Bank of Scotland (RBS) and Lloyds by launching a tender for the banks' share sale, according to reports.

Fund managers have identified a buying opportunity for Lloyds Banking Group shares, following Chancellor George Osborne's announcement the government will start selling off its 39% stake in the bank.

Former Chancellor Alistair Darling, who oversaw the bail-out of RBS and Lloyds in 2008, has urged the government to avoid a rapid disposal of taxpayers' stakes in the banking giants.

UK banks need to raise billions more in capital to cover their risks, the regulator has said.

The Chancellor, George Osborne, has said it would have been wise to split majority-government owned Royal Bank of Scotland (RBS) into a good and bad bank when the crisis erupted, paving the way for such action to be taken in the future.

Former HBOS chief executive James Crosby has been stripped of his knighthood, the UK Cabinet Office has said.

Lloyds Banking Group has admitted to failings in its handling of payment protection insurance (PPI) complaints, following an undercover investigation.