FTSE drops below 5,000 while AIG pushes US down

The UK’s index of leading stocks was 215.10 points (4.13%) lower at 2.15pm, to sit on 4989.10. HBOS’ nosedive continues, currently 35% down to 151.20p. RBS is also in sharp decline, 15.4% behind to 178.1p. Just two companies, Centrica and National Grid, are up more than 1%. Paris’ Cac40 is 2.93% lower this afternoon, while Frankfurt’s Dax is down 2.87%. European financial stocks are also feeling the pinch – with Commerzbank, Allianz and Credit Agricole all more than 10% behind. Wall Street has also opened lower on Tuesday; the Dow Jones is currently 1.4% down to 10,765.66. In the...