Financials have experienced a torrid time this afternoon on the FTSE 100 with major players such as Legal & General, Prudential and Aviva all suffering. By 3.25pm, the index was down 27.77 points (0.66%) to reach 4,161.8.
Legal & General led the way amid reports that it is in talks with the Financial Services Authority over the levels of provisions that ought to be made for defaults in its bond portfolios. As a result, its shares fell by 4.3 points (8.69%) and were valued at 45.2p per share.
Prudential also saw its share price fall by 21.25 points (6.63%) while Aviva recorded a drop of 18.75 points (5.49%).
Capita Group was the afternoon's largest gainer with its share price increasing by 16 points (2.38%), up to £6.88, while Boeing also performed well rising 0.62 points points (1.56%) to 40.48p.
Across the Atlantic, concerns about the state of financials have been reflected in the Dow Jones, which was down 82.35 points (1.04%).
JPMorgan Chase's woes have continued from last Friday and it has been the largest loser this afternoon with its shares down by 1.5 points (5.7%).
Continued uncertainty about the prospects for the US car industry also meant that General Motors saw its share price fall by 0.15 points (5.66%).Investment Week
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To promote 'long-term investment'
Switching 'hard and expensive'
Smaller funds still packing a punch