Bank shares soar 10% as Basel rules relaxed

The banking boost has helped push the FTSE up 1% to 5404.58 as banks welcomed the less draconian set of rules and a longer phase in time for the reforms. Barclays was head of the pack up 9.06% to 344.25p while RBS rose 7.67% to 50.25p and Lloyds increased 7.58% to 71.00p. Other financials also benefited with Prudential rising 5.13% to 555.50p and Aviva up 3.97% to 369.20p. The strong showing for the banks came despite business secretary Vince Cable warning today the Government would be carefully scrutinising their bonuses and dividend payments in a bid to ensure spare capital is us...