Bank shares plunge up to 40% in an hour after news of ?50bn banks deal was leaked to BBC

FTSE rally wiped out as it tumbles back into the red Under pressure: Banking chiefs have warned Alistair Darling he cannot afford to dither over a rescue plan for the British financial system British banking shares plunged today after it was claimed finance chiefs had asked the Chancellor for a £50billion bail-out to stave off further turmoil. The report by BBC business editor Robert Peston unleashed a fresh day of chaos on the Stock Market, with shares in Royal Bank of Scotland tumbling by 40 per cent at one stage in early trading. Its value plummeted by a massive £10billion on top of the 20 per cent fall yesterday despite the bank denying it had asked the Government for emergency funding at a secret meeting last night. Lloyds TSB also saw its value drop up to 26 per cent. HBOS fell by 23 per cent and Barclays by 17 per cent... [read full story]