FTSE flounders as bank stocks plummet

HBOS and Alliance & Leceister recorded significant falls of 10% and 5.23%, respectively. HBOS sustained losses after its rival Bradford & Bingley reported shock profits and cut the offer price for its rights issue, while shares in Alliance & Leceister fell after reports that French bank Credit Agricole withdrew a bid for the lender. Energy stocks were on the up following a fall in oil prices, with Tullow Oil (+2.53%) and British Energy Group (up 1.91%) featuring among the day’s biggest winners. In the US, the Dow Jones had dropped 1.14% to 12497.06 by midday, with Amer Express Inc an...