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Further FTSE falls as Labour ‘dithers’

Banking fears continued to drag on the FTSE 100 this week following reports that retail banks were pushing the Government to rush through additional funding for the sector.

On Monday, the index suffered its worst-ever one-day points fall, closing down 7.85 per cent to a four-year low of 4,589. It stabilised on Tuesday, closing at 4,605.

The UK banking sector suffered further falls on Tuesday morning following reports that Royal Bank of Scotland, Barclays and Lloyds TSB had met with Darling to put pressure on him to speed up the Government’s support for the sector.

Royal Bank of Scotland issued a statement refuting claims that it, along with others, had requested a £15bn cash injection from the Government but the bank fell 39 per cent from 150p to 90p by close of trade. HBOS fell 42 per cent to 94p, Lloyds TSB fell 13 per cent to 225p and Barclays closed down by over 9 per cent at 285p.

Premier Wealth Management managing director Adrian Shandley says: “We are suffering from a desperately weak Government. Darling is a ditherer and so is Brown. If they had come out last Friday and said they would guarantee the banks and building society accounts we would not be in as much of a mess as we are.”

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