Spread betting provider City Index ( http://www.cityindex.co.uk/) takes a look at the news activity surrounding the financial markets on 11th April 2011, including the banks rising on the FTSE 100 following ICB publication. Banks are proving to be top performers on the FTSE 100 following the publication of a report into the sector. The Independent Commission on Banking (ICB) assessed the industry and how risks could be minimised to avoid the collapse of financial institutions, as well as how problems could be affordably and effectively addressed. While it noted that a separation of retail and investment banking arms could help strengthen the sector against economic hits, the ICB stopped short of demanding that such a solution should go forward.
Following the report, many of the FTSE 100's biggest risers were banks. As of 09:25 BST, Barclays was second on the leader board after it saw its share price surge by 3.15 per cent. The Royal Bank of Scotland was in third place with a 2.62 per cent advance up the premier stock index.
“Full separation - i. e.into separate entities with restrictions on cross-ownership - might provide the strongest firewall to protect retail banking services from contagion effects of external shocks. But it would lose some benefits of universal banking, " the ICB noted. Learn about spread betting and CFD trading on the move with City Index mobile trading at: http://www.cityindex.co.uk/trading-platform/mobile-trading-platform.aspx Spread betting and CFD trading are leveraged products which can result in losses greater than your initial deposit. Ensure you fully understand the risks. * Spread betting and CFD trading are exempt from UK stamp duty.
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