FTSE dives 3.5% as HSBC plans £12.5bn cash call

At 8.30am, London's blue chip index was down 134.51 points, or 3.51% to 3695.58. HSBC, one of the world's largest banks, plans to undertake the massive rights issue in the UK following a reported loss of $15.5bn from its US lending operation Household. The bank revealed pre-tax profits for 2008 had fallen 62% on the previous year to £6.5bn, sending its share price down 9.57% to 444.25. RBS leads the banking sector slide, down 15.09% to 19.70 - while Asian-focused bank Standard Chartered has fallen 9.94% and Lloyds Banking Group is 9.43% lower to 52.80. Insurance and reinsurance unde...