FTSE 100 movers: Banking stocks rise as Osborne backs new proposals

8th Jul 2013 13:35

Banks rallied on Monday, with Royal Bank of Scotland leading the race, as Chancellor George Osborne vowed to introduce strict new proposals to shake up the banking sector. Osborne said he would back the recommendations from Britain's Parliamentary Commission on Banking Standards, including rules that would see senior bankers face jail time and lose millions of pounds in bonuses if they are involved in a future banking collapse. Lloyd's Banking Group also edged higher following reports former Standard Chartered Chairman Mervyn Davies planned to form a consortium of investors to bid for part of the UK government's 39% stake in the lender. Davies is said to have approached Standard Life and sovereign wealth funds about assembling a group to make an offer. Standard Life, a savings and investments company headquartered in Edinburgh, also advanced following the news. Supermarket chains were the biggest fallers including Morrison Supermarkets, Marks & Spencer Group and Tesco following a report on rising food poisoning cases linked to infected chicken in grocery stores. An estimated 580,000 people each year contract stomach bug campylobacter despite the government's food standards watchdog making the issue its number one priority, according to the Daily Mail.Tesco's shares were also hit by news its former Chief Executive Terry Leahy, who led the supermarket group for 14 years before retiring two years ago, has received almost £8.5m in performance-based payouts since his departure.Smith & Nephew slumped following Friday's gain on the back of the health company's announcement it would purchase certain assets related to the distribution of its orthopaedic reconstruction, trauma and sports medicine products in Turkey, currently conducted through Plato Group.FTSE 100 - RisersRoyal Bank of Scotland Group (RBS) 291.40p +5.31%Resolution Ltd. (RSL) 305.80p +3.80%Babcock International Group (BAB) 1,167.00p +3.00%Barclays (BARC) 300.05p +2.93%Aviva (AV.) 359.20p +2.83%Lloyds Banking Group (LLOY) 66.40p +2.74%ITV (ITV) 153.60p +2.74%Johnson Matthey (JMAT) 2,834.00p +2.64%Standard Life (SL.) 375.50p +2.54%WPP (WPP) 1,183.00p +2.42%FTSE 100 - FallersMorrison (Wm) Supermarkets (MRW) 270.30p -0.81%Smith & Nephew (SN.) 750.00p -0.79%Rexam (REX) 481.30p -0.37%Eurasian Natural Resources Corp. (ENRC) 210.60p -0.09%Marks & Spencer Group (MKS) 462.30p -0.09%Shire Plc (SHP) 2,155.00p -0.09%Tesco (TSCO) 340.85p -0.09%Bunzl (BNZL) 1,372.00p -0.07%Severn Trent (SVT) 1,734.00p -0.06%Fresnillo (FRES) 886.00p -0.06%RD