FTSE plunge

AOL article 6 Oct 2008

FTSE plunges to four-year low
Last Updated: Monday, 06 October 2008, 13:30 GMT
- Search: record stocks fall

More than £93 billion was wiped from the value of the UK's biggest companies as London's FTSE 100 suffered its biggest fall since Black Monday.

As fear swept through global markets and governments rushed to prop up banks across Europe the Footsie slumped 7.8% - its largest one-day percentage decline since the aftermath of Black Monday in October 1987.

In London, trading screens turned red after a weekend in which European governments rushed to support failing banks hit by lack of funds.

CMC Markets analyst James Hughes said: "I've never seen anything like this. What we are seeing over the last few weeks is a once-in-a-lifetime event."

The pressure came after German lender Hypo Real Estate became the latest to receive state aid.

Italy's largest bank, Unicredit, also warned on profits after announcing asset sales and plans to shore up its balance sheet with a 6.6 billion euro (£5.1bn) boost.

Elsewhere, Iceland's stock exchange suspended trading in shares of six major banks as its Government works on an economic rescue plan.

MY QUESTION: WHERE ARE WE HEADING? AM COMPLETELY LOST IN THIS FINANCIAL WORLD. DOES THIS MEAN THAT IF TOMORROW I TURN UP AT MY BANK AND ASK FOR MY DEPOSITS THEY MIGHT SAY: SORRY WE DON'T HAVE YOUR MONEY ANYMORE?