FTSE Deep in the Red

MONDAY MARKET UPDATE: The benchmark FTSE 100 index fell by 100 points as investors worried about UK banking regulations and rumours swirled about government corruption in Spain

Alanna Petroff 4 February, 2013 | 6:30PM
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The UK markets took a dive on Monday after chancellor George Osborne gave a speech about tough new banking regulations. Osborne outlined how regulators may soon be given the power to break-up banks if they fail to sufficiently separate their retail and investment-banking operations.

"My message to the banks is clear: if a bank flouts the rules, the regulator and the Treasury will have the power to break it up altogether – full separation, not just a ring fence," said Osborne, according to a text released by his office. "We’re not going to repeat the mistakes of the past."

By the close of the day, shares in all of the big banks had taken a tumble. Shares in the Royal Bank of Scotland (RBS) had fallen by 3.5%. Shares in Barclays (BARC) also dropped by nearly 3%.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Barclays PLC179.08 GBX-0.18Rating
NatWest Group PLC205.80 GBX0.34Rating

About Author

Alanna Petroff

Alanna Petroff  is a financial journalist with Morningstar UK.

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