FTSE plunges on HBOS attack

Despite the City regulator revealing it identified flaws in HBOS' business as far back as six years ago, shares in its owner, Lloyds Banking Group, rose 2% to 89p. The FSA issued a statement saying: "The FSA conducted a full risk assessment of HBOS in late 2002 which identified a need to strengthen the control infrastructure within the group." Elsewhere, mining company Rio Tinto's stock fell 0.75% to around £19.50 this morning, despite the announcement it is receiving a Chinese State cash injection. Chinese government owned aluminium company Chinalco has bought $19.5m of Rio Tinto, doub...