Lloyds

Deputy Prime Minister Nick Clegg has backed proposals to give the public shares in part-nationalised banks RBS and Lloyds.

Shares in Barclays and its peers moved higher in early trading despite the bank's move to settle PPI claims.

The Federal Bureau of Investigation (FBI) has joined the investigation into the alleged manipulation of LIBOR by UK banks during the financial crisis.

Shares in Barclays were off around 1% in early trading after it abandoned its legal challenge against PPI mis-selling and set aside £1bn to cover customer redress and administration costs.

Banking shares led the FTSE 100 lower late morning after Lloyds Banking Group revealed it had set aside £3.2bn to compensate customers for missold payment protection insurance.

Bailed-out Lloyds Banking Group has made a £3.2bn provision for the cost of mis-selling payment protection insurance (PPI), driving the bank to a loss in Q1.

Jupiter's Guy de Blonay is among several managers who have welcomed the Independent Banking Commission's report, released yesterday, as the burden of regulation on the UK's banks is set to be less onerous than expected.

The Japanese government has raised the severity of the crisis at the Fukushima Dai-Ichi nuclear plant to 7, a rating only previously applied following the 1986 Chernobyl disaster.

Bank shares led the FTSE 100 higher in early trading as investors breathed a sigh of relief that the Independent Commission on Banking had opted to ring-fence banks rather than break them up.

Fidelity's Aruna Karunathilake has bought into Lloyds for the first time in three years to take advantage of the stock's depressed valuation.