Lloyds the exception as FTSE rallies

The recent recovery for shares in Lloyds Banking Group was halted today after a further deterioration in corporate bad debts at the new HBOS owner.

Shares were 9% lower, down 9.8p at 103.4p, after Lloyds warned of a “significant” rise in impairments due to the impact of recession on its loan book. Lloyds reiterated its warning that it expected to make a loss this year.