The FTSE100 plummeted beneath its 52-week low this morning following further significant losses for Halifax Bank of Scotland (HBOS).
The blue-chip index has fallen 86.9 points, or 1.67%, to 5,117 taking its losses in 2008 past the 20% mark.
HBOS has dropped 29.75p, or 12.8%, to 202.75p, marking a dramatic slump over the last year when the bank almost hit £10 per share.
Admiral Group, down 100.5p to 779.5p and Cairn Energy both suffered huge losses also, with drops of 11.42% and 9.18% respectively.
Marginal gains for Enterprise Inns, up 9p to 217.5p, Centrica and British Airways are helping stem the flow of losses.
In New York, stocks suffered their worst day in more than seven years thanks largely to staggering losses for insurance giant AIG.
The Dow Jones fell 504.48 points, or 4.42%, to 10,917.51, representing its biggest drop since 11 September 2001 and a near 50 points fall from its 52-week low.
Shares in AIG fell by more than 60% in value to just 4.76 points, a drop which dwarfed the one-day losses of even Lehman Brothers.
Bank of America fell 7.19 points, or 21.31%, to 26.55, while Citigroup and GEN Motors also took significant hits. Only Coca Cola, with a marginal gain of 0.25 points to 54.75 points her share, made in into the winner’s table on Monday.
Asian indices were also hammered, with Tokyo’s Nikkei 225 plunging 605.04 yen, or 4.95%, to 11,609.72 and Hong Kong’s Hang Seng diving 1,052.29, or 5.44%, to 18,300.61.
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