Lloyds and RBS cause bank share prices to waver again

Speculation about Lloyds Banking Group (LON:LLOY) and Royal Bank of Scotland (LON:RBS) after this week’s announcement that they must sell some subsidiaries caused share prices to waver again.

Over the past few months, there has been a marked improvement in the fortunes of many bank shares. The brave investors who brought while panic and fear stalked the market, have made substantial gains. But for Lloyds and RBS having to sell some of their businesses caused their shares to be unstable again.

At one point last week Lloyd’s shares lost 17pc of their value in three days, only to gain 7.5pc in the next days trading. While for RBS the markdown was even heavier at one point last week they lost 14pc of their value in one morning session. The head of UK equities at Hargreaves Lansdown Stockbrokers Richard Hunter said “if there is one thing that the market despises, it is uncertainty”.

However now this uncertainty seems to been lifted, with both banks unveiling plans to raise further capital. So what do these measures mean for the millions of private investors who hold bank shares? To read more on this story go to telegraph.co.uk. Do you think it is time to sell your shares in these groups? Let us know your thoughts.