FTSE down at market close

More than £50 billion was wiped off the value of blue chip stocks today as news of Lehman Brothers’ dramatic demise spread havoc throughout world stock markets.

The Footsie nose-dived by 212.5 points to close at 5204.2. But it managed to pull back from an earlier drop of more than 5% – taking it near to levels not seen since 2005 – following a marginally lower-than-expected fall in early trading on Wall Street.