FTSE dives into the red on banking woes

Shortly after 2.30pm, London's leading share index was down 3.4%, or 185 points, to 5146. Barclays and Lloyds Banking Group have both tumbled more than 8% with Royal Bank of Scotland down 7.9% after fresh fears over the European banking sector sent investors into panic mode. Banks shares plunged after the European Central Bank (ECB) lent dollars to an unnamed eurozone bank, reports the BBC. The ECB intervention - the first of its kind since February - further stoked euro concerns after France and Germany set out plans for a controversial tax on financial transactions. In German...