PRESS ASSOCIATION -- London's leading shares index has plunged into the red as shares in Britain's banks were hit by fears over a lawsuit launched against them in the United States.
Royal Bank of Scotland and Barclays both lost more than 7% while HSBC shed more than 1% after the Federal Housing Finance Agency (FHFA) filed claims against them and 14 other banks over the subprime mortgage scandal.
The wider FTSE 100 Index, still reeling from a dismal jobs report in the US on Friday and following a weak session in Asia, fell by more than 1% in early trading.
The FHFA claims the banks misrepresented the quality of billions of dollars of home loans sold to America's state-backed mortgage giants Fannie Mae and Freddie Mac.
RBS has said the allegations are unfounded and it will defend them vigorously.
Suggested For You
Get top stories and blog posts emailed to me each day. Newsletters may offer personalized content or advertisements. Learn more