FTSE loses more than 3%

The FTSE 100 Index slid more than 3% today amid more woes in the banking sector and fears of bankruptcy among major US carmakers.

The recent modest rally for the blue-chip index was a distant memory in a difficult start to the week as the rescue of the Dunfermline Building Society by larger mutual Nationwide and a bank bail-out in Spain gave a fresh blow to confidence in financial stocks.