Bank shares rally after Northern Rock nationalisation

Banking shares were buoyed in early morning trading on hopes of higher dividends and the Northern Ro...

Banking shares were buoyed in early morning trading on hopes of higher dividends and the Northern Rock nationalisation. Barclays and Lloyds were among those lifted following newspaper reports saying that the two banks would likely lift their dividend payments. Lloyds TSB was up 17.5 points, or 4.42%, and HBOS rose 4.27%, as at 10.30am. Other risers included Barclays which was up 26 points, or 6.08%, Prudential up 27.5 points, or 4.64%, Standard Chartered up 70 points, or 4.57%. The Government's decision to nationalise stricken mortgage lender Northern Rock also helped the sector. " ...