Financials continue to drag FTSE

Shortly after 3pm, the FTSE100 index was down 137.16 points (3.19%) at 4,158.04 after US shares opened sharply lower. Lloyds Banking Group dropped 17.94% to 82.8p over fears it would follow RBS in seeking further Government support, while private equity managers 3i Group fell further, down 16.32%, after reporting major losses on some investments. The insurance sector also fared badly, with Skandia owner Old Mutual down 12.23% while Legal & General dropped 9.96% despite a 3% rise in sales in 2008. Morrison Supermarkets performed well, with shares climbing 13.5%, while rival Sainsbury add...