//
It comes amid criticism of hedge fund managers and accusations that their activities contributed to financial crisis which has taken the nation into recession, reports the Press Association.
A Treasury select committee heard executives, including Stephen Zimmerman of NewSmith Capital Partners, who told MPs that banks are solely responsible for their own stock declines.
They denied the activities of their large hedge funds have contributed to a downturn in bank shares, which recently led the government to bailout the sector using UK taxpayers' money, the article noted.
Shares in UK banks such as the Royal Bank of Scotland (RBS) and Lloyds have plummeted amid fears among shareholders of increased nationalisation.
However, the banking sector recovered in stock market trading this morning, with Lloyds and RBS both posting significant gains of 40 per cent and 14.7 per cent respectively by the mid-session.
