RBS

The collapse of debt burdened firms that were bought up by private equity companies before the financial crisis could pose the next major risk to the stability of the UK's economy, the Bank of England has warned.

The director-general of the Institute of Directors (IoD) has hit out at the pay packages received by bankers.

The FSA was aware that LIBOR rigging could pose a ‘significant issue' to the UK's banking system as early as 2008, an internal report has shown.

Banking stocks continued to pull back the FTSE 100 on Monday, as the losses announced by Lloyds Banking Group last week continued to dog the group and its peers.

Banking shares dragged the UK's leading index lower in morning trading following results from Lloyds Banking Group which revealed a £570m loss for 2012.

London's leading share index has made modest gains throughout the day, held back by heavy losses from Royal Bank of Scotland and a number of miners.

Royal Bank of Scotland has posted a pre-tax loss of £2.2bn in the fourth quarter, taking full year 2012 losses to £5.2bn, but despite the results the bank said the government is much closer to selling its stake.

Royal Bank of Scotland is to make further cuts to its investment bank but is also readying plans for a £5bn share sale in 2014, according to reports.

Neptune founder Robin Geffen has blamed an underweight to financials for the recent poor performance of the £922m Neptune Income fund.

Prime Minister David Cameron has called on Royal Bank of Scotland to speed its return to the private sector amid speculation the government may give away its stake to the public.