Banks victimised by credit crunch

16 September 2007

Britain's banks have seen the impact of the credit crunch, with major banking institutions seeing a dramatic share index fell.

According to the FTSE 100 this morning the British share index was down 23.8 points, with an overall loss of 5.7 per cent so far this month

Howard Wheeldon, senior strategist at BGC Partners, told Reuters: "We are living in a period of fear ... fear of uncertainty. Until there is sufficient evident that we are well on the other side of the slip down on subprime, then this nervousness will continue."

Despite other institutions taking a hit, banks were the biggest losers in shares with the Royal Bank of Scotland's shares falling two percent, HBOS shares dropping 1.7 percent and Alliance & Leicester's assets tumbling by 2.7 per cent.

Lloyds TSB's shares dipped by one per cent while Barclays shares took a 1.6 per cent dive.

Credit checking group Experian were the heaviest hit by share losses, acknowledging "exceptionally difficult" trading conditions due to the credit crunch and US sub-prime mortgage crisis.

Over the past month, Experian's share losses have seen as much as a 16 per cent drop.

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