Ban on short-selling of UK bank shares lifted

The removal of a ban on the short-selling of UK financial sector shares will provide a further test to under-pressure banking stocks today.

The move comes at a time of fresh turbulence for the sector amid fears that banks will need further cash to bolster their balance sheets. Lloyds TSB shares were down 11% yesterday, while Barclays fell 8% and HSBC dropped 7%.