Shock market: banks hit hardest as Lehman Brothers collapse bites
Updated on 16 September 2008
Shares in Britain's biggest mortgage lender HBOS down 22 per cent on Tuesday.
Meanwhile, Wall Street, the City of London and stock markets across Europe and Asia are still in freefall in the wake of the Lehman Brothers collapse.
Here the index of leading shares tumbled almost 3.5 per cent; finishing just above the 5000-mark, the lowest level in three years, with banking shares the worst hit.
And there is no credit lifeline with the squeeze getting even tighter despite yet more huge cash injections by the world's leading central banks.
To compound the economic gloom inflation rose to 4.7 per cent last month, a 16-year high.
