HSBC, Barclays and RBS are among 15 Wall Street banks accused by a US investment firm of mis-selling a total of $2.4bn (£1.6bn) in mortgage-backed securities, reports the Telegraph.

Updated 14.30 The FTSE has staged triple-digit gains in afternoon trading as banks lead the upward surge, buoyed by the Bank of England's decision to keep rates on hold at 0.5%.

The FTSE has opened trading in positive territory, but fears of a double-dip recession on the back of disappointing US and Chinese economic data still abound.

RBS has completed the sale of its metals, oil and energy business to J.P. Morgan in a deal worth $1.6bn (£1.1bn).

The FTSE 100 has slipped further into the red in late afternoon trading as disappointing US manufacturing and housing data added to growing concerns of stuttering global growth.

Besieged BP's share price soared 9% this morning as markets weighed up its value as a takeover target as the current oil spill debacle subsides.

Resolution says it will go ahead with a £2bn rights issue later this month even if the Axa deal falls through as the proceeds can be used to fund other acquisitions.

BP has denied reports from Russia that Tony Hayward is set to stand down.

The investment management sector is expected to suffer a "sharp contraction" in the next quarter, says the latest CBI survey.

The FTSE 100 has opened in positive territory as investors react with relief to a watered down US financial services reform bill.