Grim HBOS update sends banks tumbling

Lloyds TSB, whose shareholders approved a merger with HBOS last month, tops the loser's table after falling almost 15% while HBOS slumped more than 13%. In its trading update, the bank said bad debts and losses on assets had risen to £8bn in the first 11 months this year, up £3.2bn since the end of September. Bad debts on corporate loans jumped to £3.3bn from £1.7bn. HBOS shareholders are set to meet in Birmingham today to vote on the plan to be taken over by Lloyds and raise capital by offering £8.5bn ordinary shares and selling £3bn preferred shares to the Government. The Royal Bank...