FTSE plunges to three-year low

London’s FTSE 100 Index today plunged to its lowest level in more than three years as the fall-out from Lehman Brothers’ collapse reverberated around the globe.

The Footsie fell below the 5,000 mark for the first time since June 2005 with London’s biggest stocks taking a new pounding.

Fears over US insurance giant AIG also shook confidence among investors, with US markets expected to fall further after their biggest fall since the 9/11 terror attacks in 2001 yesterday.