London shares fell further this afternoon as investors took stock of a major US investment plan, and the FTSE 100 dipped 55.53 points (1.4%) to 3,897.28 shortly after 3pm.
Legal & General shares dived ahead of publishing its full year results, with an expected dividend cut pushing values down 8.7% to 41p.
Bank shares fell after making major gains on Monday, with HSBC dropping 5.4%, Barclays down 2.2% and Lloyds down 5.3%. However, troubled Royal bank of Scotland added 2.4% to its share price, which sits at 25.6p.
In the US, shares fell back after major gains on the back of Monday's bailout plan, with the Dow Jones down 69.06 points (0.89%) to 7,706.8.
Bank of America shares dipped 4% in early trading as two top members of its Merrill Lynch team announced they will leave the firm.
Other financial stocks also fared badly, with Citigroup shares down 4.79% and JP Morgan Chase lost 3.57%.Investment Week
Search for replacement to begin imminently
60+ £300bn ISA savings
Has technology moved on?
Total funds on list rise from 26 to 58
What made financial headlines over the weekend?