FTSE 100 tumbles led by RBS, HSBC and HBOS

In London the FTSE 100 index plunged early on Wednesday by 1.3 percent. Royal Bank of Scotland (RBS), HBOS (LON:HBOS) and HSBC (LON:HSBA) led the way with declines between 1.3 percent and 3.5 percent.

The FTSE 100 had its biggest one day gain on Monday of nearly 10 percent and on Tuesday rose 0.4 percent after the federal government announced plans to throw a lifeline to US consumers making it easier for them to obtain loans on credit cards, cars and homes. Both HSBC and HBOS also gained on Tuesday’s session.

During early trade on Wednesday in London (8.31am) the FTSE 100 plunged 52.81 points to 4,118.44.

RBS lost 1.3 percent after the government had to rescue the bank with a £20 billion cash injection after the bank lost on complex bad debt. Old National BanCorp has agreed to purchase 65 retail bank branches in Indiana from Royal Bank of Scotland.

Source: Reuters The Duchess ipod