Economics / Markets

London shares fell in early trading as banks fell back after yesterday's gains.

The biggest financial crisis in modern British history heralded an unprecedented bonanza in fees for City lawyers, accountants and advisers, according to the definitive assessment of Treasury spending on the bail-outs.

Banks led the FTSE to an early gain in Thursday trade following reports the Bank of America (BoA) is poised to repay its $45bn US government debt.

Barclays is set to award its 22,000 investment bankers pay rises of up to 150% in an effort to beat Government moves to clamp down on multi-million-pound bonuses.

The FTSE shed more than 21 points by lunchtime today following yesterday's brief rally, with banks taking the worst hit on continuing concerns over exposure to Dubai debt.

A sharp 1% rise for the Dow Jones in early trading has extended gains for the FTSE 100 this afternoon, as fears over Dubai debt exposures continued to wane.

London's leading shares have started the day positively as investors shake off concerns surrounding the fallout from Dubai.

US stocks have weathered a 7% slump for Dubai's leading index and are back in the black.

Fears are growing over Britain's exposure to the financial turmoil in the stricken Arab state of Dubai, reports the Daily Mail.

London investors are still wary after last week's request by Dubai World for a six-month standstill on debt repayments raised concerns about possible default.