FTSE 100 Banks doing well with Lloyds Bank leading the way

The FTSE 100 is up today at just over 4,400, with Banks doing well and Lloyds leading the way.

News that Lloyd’s chairman, Sir Victor Blank, will step down as chairman by the AGM in 2010 has led to a rise in Lloyds Bank share price, up nearly 6% at the time of writing.

There has been increasing pressure on Blank over the Lloyds purchase of rival HBOS.

Blank had a key role in this and therefore it is not surprising that he is stepping down.

Interestingly, Blank was also a director of Royal Bank of Scotland (RBS) during the late 80s into the 90′s.

Another factor helping the Lloyds bank share price rise is that it also announced it is swapping £4 billion of preference shares for equity.

Lloyds private investors are being offered 0.6213 shares at 38.43p for every share they own, a discount of nearly 57% against the closing share price on Friday of 89.2p.

Any shares not taken up are expected to be placed in the market at the conclusion of the open offer at a price of 38.43p or more.

Those shareholders who do not take up the offer will receive a share of any profits from the sale of the unsubscribed Lloyds shares.

Analysts are generally encouraging investors to take part in the share offer. That said the short to medium term outlook for the bank does not look particularly good, as highlighted in its recent unexpected trading statement.

Investors should of course make their own judgements on buying or selling shares and if in doubt seek independent financial advice.