Heavy sell-offs of Lloyds Banking Group and Barclays shares characterised the FTSE 100 this afternoon as fears about the scale of losses facing the sector continue.
Lloyds Banking Group's fell by 26.62% with its share price standing at 47.7 p as at 3.09pm. Barclays lost 12.2% with its share price standing at 77.2 p. The falls came after both stocks had registered gains in the morning.
It suggests that that the market is not confident about the prospects for success of the UK government's rescue package, which involves a scheme to insure banks against tens of billions of pounds of unexpected losses on potentially toxic assets.
With concerns about the state of financials, the FTSE 100 was down 11.72 points (0.29%) to 4096.75 as at 3.29pm.
Meanwhile, Royal Bank of Scotland Group, which plunged 67% yesterday, climbed 2.59% and saw its share price reach 11.9p. Earlier in the day its share price had reached 22.5p during the day.Other winners in the FTSE 100 included Old Mutual whose shares rose by 5.13% to reach 57.4p.
In the US, the Dow Jones was down 119.5 points (1.44%) to 8161.67. This signals that the 'Barack bounce', which many investors will be hoping for has yet to take effect.
The major winners on the Dow Jones included Pfizer and AT&T. Pfizer's share price rose by 1.14% while AT&T climbed 0.99%.
Meanwhile, Bank of America's share price plummeted by 16.71% while Citi's dropped by 11.48%.Investment Week
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