Royal Bank of Scotland

RBS chief executive Stephen Hester has warned if the UK economic recovery is weaker than expected, the bank's results will suffer, a week on from renewed bailout fears for RBS.

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.

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.

The Independent Commission on Banking (ICB)'s plans to ring-fence will have a very limited impact on the UK's economic output, according to Ernst & Young.

Analysts are underestimating the extent of the problems facing the banking sector, in a scenario reminiscent of the collapse of Lehmans, said Colin McLean, managing director of SVM.

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

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.