FTSE down nearly 4% in line with European declines

Royal Bank of Scotland shares slumped 12% today as litigation fears, weak economic data and the eurozone debt crisis drained market confidence.

The FTSE 100 Index finished nearly 4% or 189.4 points lower at 5102.6, broadly in line with markets in Europe where signs of higher borrowing costs in Spain and Italy also hammered stocks in Paris and Frankfurt.