RBS funding problems drag FTSE near 4,000

The FTSE 100 was teetering on the 4,000 point barrier this afternoon, with the main London index down 30.01 points (0.74%) to 4,004.12 shortly after 3pm. Royal Bank of Scotland shares fell 8.7% as the firm struggles to find the £8bn it needs to subscribe to the Government's toxic loan insurance scheme. Legal & General shares lost ground due to continued concerns over its ability to fund defaults, down 5.96%, while competitor Prudential dipped 5.55%. Strong demand for precious metals helped platinum firm Johnson Matthey to add 5.03% to £10.65 per share. US investor saw relative calm ...