AROUND £10billion was wiped off Britain’s banks yesterday as a dramatic sell-off spread to London.
Shares in HSBC fell by more than five per cent, Barclays and Natwest shed three per cent each and Lloyds lost more than 3.5 per cent in the worst one-day fall for banks since the pandemic began.
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More than $50billion (£41billion) was wiped off Wall Street banks a day earlier.
The market chaos was sparked by fears that banks will be vulnerable to rising costs after a Californian lender, Silicon Valley Bank Financial, failed to tap investors for fresh survival cash.
Investors are concerned its cash call is the start of widespread problems caused by the falling value of bonds, technology assets and mortgage-backed securities.
Banks globally fear they could be vulnerable, particularly as interest rates are rising — which means the cost of borrowing will be even higher.
Analysts at Shore Capital tried to reassure clients, saying it was not a “‘Lehmans moment’ for the industry”.
The firm’s collapse in September 2008 marked the start of the global financial crisis.
There are lingering concerns that rising interest rates will cause pain for other areas, such as hedge funds and pension funds.
G4S case drop
A TEN-year probe into the G4S prisoner-tag scandal has collapsed.
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Three ex-directors faced charges for defrauding the government.
G4S has already paid fines in exchange for avoiding criminal liability.
The Serious Fraud Office told a court yesterday it was “no longer in the public interest” to hold a trial.
Veg shortages
THE salad crisis has left Brits facing food shortages, a study reveals.
More than a third of adults said they could not find a replacement if an item was not available.
Lidl are axing rations on cucumbers, tomatoes and peppers from Monday.
Asda and Morrisons are following suit on cucumbers.
