Banking stocks suffered massive losses today, contributing to the FTSE100's 1.78% loss, as the index closed at 5723.30, down 104 points.
HBOS, Alliance & Leceister and RBS were among the five biggest losers, with HBOS dropping a massive 11.64%.
The company’s shares have now fallen below the price of its upcoming rights issue – 275p – closing the day at 258p amid mounting fears concerning the state of the UK housing market.
Alliance & Leceister dropped 8.41% following reports that the bank is to exit the FTSE100 index.
First Group, the UK commercial property find manager, was among the day’s biggest winners, rising by 2.49% to 515.50p, after reports that its full-year profit rose almost fourfold on performance fees from its management division.
In the US, the Dow Jones had fallen by 1.39% during early afternoon trading, with Alcoa Inc and Gen Motors taking the biggest hits, falling by 6.41% and 3.27%, respectively.IFAonline
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