HSBC and AIG weigh heavily on FTSE

The FTSE 100 Index tumbled 5% to a six-year low today after HSBC and insurance giant AIG sparked another crisis of confidence for world markets.

Market heavyweight HSBC was the victim of a major sell-off - its shares closed 19% lower - after it slashed its dividend, announced a 62% fall in profits and unveiled plans for a record £12.5bn (€13.94bn) rights issue.