Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Barclays (BARC), Lloyds Banking (LLOY), and Royal Bank of Scotland (RBS) Head Lower As Cypriot Bank Tax Hits FTSE 100

LONDON — The shares of leading U.K. banks fell during early London trade this morning following news that Cyprus had implemented a bank levy that would charge depositors up to 10% of their savings.

Barclays (LON:BARC) slid 11 pence to 309 pence, Lloyds Banking (LON:LLOY) lost 1.3 pence to 49.2 pence while Royal Bank of Scotland (LSE:RBS) dropped 10 pence to 298 pence as investors responded to a fresh wave of eurozone debt fears.

The FTSE 100 index dived 62 points to 6,427.

The Cypriot bank levy is part of a wider, 10 billion-euro bailout negotiated by the Mediterranean island with the European Union and International Monetary Fund over the weekend. Cypriots with up to 100,000 euros in their accounts will pay 6.75%, while those with more face a 9.99% charge.

In return, Cypriot savers will receive shares in their bank.

Savers with deposits in the U.K. arms of Cypriot banks are reportedly unaffected by the levy. The U.K. government has also pledged compensation to any U.K. military personnel that suffer a charge.

The news from Cyprus may well test the resolve of U.K. bank-sector shareholders, who have enjoyed racy returns since the summer of last year.

Indeed, from trough to peak during the last year or so, the shares of Lloyds Banking (LON:LLOY) have lunged from 25 pence to 55 pence, RBS has rallied from 196 pence to 366 pence while Barclays (LON:BARC) has bounced from 151 pence to 327 pence.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.