Shares in U.K. lenders exposed to a probe into commissions on car loans traded higher after the country’s Supreme Court overturned most of a landmark ruling, reducing the estimated costs of a looming compensation program.
The stocks of Lloyds Banking Group and Close Brothers among others jumped at market open on Monday as investors breathed a sigh of relief. The decision narrows the potential range of a redress program on motor-finance claims, allowing the exposed firms, which had been bracing for potential payouts running in the tens of billions of pounds, to avoid a worst-case scenario.