FTSE advances after Bank of America bail-out

The Royal Bank of Scotland Group was the biggest mover after its share price climbed by more than 6%. The rise followed news Bank of America, the US's largest bank, will receive $20bn of government aid and $118bn of guarantees against bad assets in return for a stake in the company. The emergency funding, which comes on top of a recent $25bn capital injection from the Troubled Assets Relief Programme, will help the bank absorb the losses it incurred when it bought Merrill Lynch. Fears the company's worsening capital base could filter through to the wider economy sparked the government...