FTSE shows resilience as bank shares drop

Bank shares were sharply lower today after Royal Bank of Scotland confirmed its £12bn rights issue and investors digested the terms of Monday’s plan for a Bank of England liquidity injection.

RBS shares dipped 4% ahead of the capital-raising manoeuvre, which was at a higher level than many analysts had expected and will see new shares offered at £2, a 46.3% discount to the share price last night.