Markets slump on banking worries
Written by Shiv Prasad on 9:39 AMIn New York the Dow Jones Industrials tumbled 194 points, more than 1.5%, in early trading before recovering.
London's FTSE 100 index was down 2.7%, in Paris the Cac 40 slumped 2.9% and Frankfurt's Dax fell 4.1%.
The Bank of England on Monday made an extra £5bn ($10bn) available for UK banks to borrow to ease credit fears.
The money was five times over-subscribed.
Meanwhile, on the markets US, UK and European banks were hammered; Lehman Brothers fell 30%, UBS lost 13%, HBOS 10% and Commerzbank fell 7.9%.
Investors are worried that the collapse of Bear Stearns, one of Wall Street's biggest names, is a sign that the credit crunch is getting worse and lending might seize up.
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