Banks led the London market lower on Thursday as Dubai’s attempt to reschedule debt led investors to dump riskier investments, sending the FTSE 100 to its biggest daily fall since March.
Royal Bank of Scotland was among the sharpest fallers. The stock tumbled 7.8 per cent to 33p after Goldman Sachs cut forecasts to reflect higher loan losses and forecast that RBS would not to return to normal earnings until 2013.
