Bank shares recover some ground

Added (2009-Jan-20)

UK banking sector shares were mixed in mid-morning trading on Tuesday, following sharp falls on Monday.

Royal Bank of Scotland shares rose 12%, having plunged 67% on Monday after the bank had predicted a record loss.

But Lloyds Banking Group - which had fallen 34% on the first day after it completed the acquisition of HBOS - was down a further 11%.

On Monday the government announced of a second package of measures to help the banking sector.

The plan includes an insurance scheme to cover bad debts held by banks and a £50bn fund to allow the Bank of England to lend money directly to businesses.

Barclays was down 2% while HSBC lost 1%.