Banks rallied on Thursday after Barack Obama's nominee treasury secretary, Timothy Geithner, pledged the US would step up its bid to stabilise its banking system.
Royal Bank of Scotland (RBS) advanced 13% to 14.1p while Lloyds Banking Group and Barclays toasted 15% and 7% gains respectively.
Schroders, a frontrunner in bids for stricken asset manager New Star, advanced 13%, while Friends Provident climbed 10%. The moves helped push the FTSE above 4,150, a 2% gain.
BT Group plunged 13% after it revealed Q3 profits at its Global services division had taken a substantial hit.
In the US, gains of more than 30% for both Citigroup and Bank of America eased the Dow Jones toward a 3.5% climb on Wednesday.
Sir Win Bischoff, Citi chairman, has announced he will be standing down after being largely blamed for the bank's troubles. Sir Win and other senior executives were blamed for pushing the firm into high-risk businesses that led to losses totaling more than $20bn.
Bank of America rallied after it emerged chief executive Kenneth Lewis bought 200,000 shares in his own company. It has been seen as a sign of confidence in the struggling banking sector.IFAonline
Caring for children and elderly relatives
Similar to June 2007
Square Mile’s series of informal interviews
Fine reduced to £60,000
Two roles created