Lloyds

Shares in Lloyds Banking Group have dropped by 5% after the company announced CEO Antonio Horta-Osorio was taking a temporary leave of absence.

The chief executive officer of part-nationalised British lender Lloyds Banking Group, Antonio Horta-Osorio, is taking a leave of absence for health reasons, a source with knowledge of the matter said according to reports.

UK banking stocks drove this morning's FTSE 100 rally, with Barclays, RBS and Lloyds all surging roughly 6% on the news a eurozone debt deal has been reached.

Banks shares extended losses this afternoon as Fitch Ratings downgraded Lloyds and RBS' long-term credit rating from AA- to A and placed Barclays on a negative watch.

B(L)ANK CHEQUES

Bank shares have deepened losses after the downgrade of 12 UK financial institutions by Moody's, pushing the FTSE 100 into negative territory.

Tim Tookey, Lloyds' finance director, is to resign from the group to become chief financial officer at Friends Life.

The final set of recommendations from the Independent Commission on Banking (ICB) has provoked a mixed response from commentators, with some warning the cost of the move could drive up risk taking by the banks, while others welcome the 'safety measures'...

Banks led markets sharply lower in early trading but their shares have now stabilised as markets digest the long-awaited Independent Commission on Banking report.

The final report from the Independent Commission on Banking has recommended UK banks' retail and wholesale arms be split off, and said the 7% capital buffers required under Basel III do not go far enough.