Investors need a strong stomach to invest in UK bank stocks. In recent years they have displayed considerable levels of volatility that cannot be wholly explained by the fundamentals of the individual banks. In fact, bank stocks are now arguably the most effective barometer available to measure risk appetite.
Some of Britain’s biggest banks have begun quietly ridding themselves of billions of pounds of assets they have found difficult to sell following the financial crisis, moving them off their balance sheets and into staff pension funds, the FT reports.
Some time this morning, the New York Federal Reserve will buy $4 billion to $5 billion in Treasuries, completing its $600 billion purchase program.
It started with Italy — Moody's said it was considering downgrading the creditworthiness of Italian banks.
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Lloyds Banking Group is looking to raise £20 billion ($32 billion) to help fund the sale of 600 branches.
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