U.K. Mortgage Lender HBOS Shares Down By 26 Percent

London, England (AHN) - Britain's stock market continued to be dragged down by developments in the U.S. as the London index declined 229 points, while the shares of HBOS, U.K.'s largest mortgage lender, went on with its downward trend.

On the second day after panic hit the global financial markets on the bankruptcy of Lehman Brothers, the FTSE dipped below the 5,000-point mark, the first time it happened in over three years. The FTSE 100 index decreased 229 points to 4,975.2 points, which was a 4.5 percent decline.

Shares of HBOS, owner of Halifax, at one point went down by more than 40 percent, but later ended 26 percent lower to 171 points by early afternoon.

To provide stability, the Bank of England infused another $36.6 billion (20 billion pound) into the market to avoid another liquidity freeze up. However, the move failed to prevent overnight borrowing to jump to its highest level in seven years.

Following the prevailing gloom in the market, Unite, Britain's largest trade union, called for urgent action. Graham Goddard, Unite's deputy general secretary told Guardian Unlimited, "This global financial crisis has sent shockwaves across the industry... It is apparent that the free market system has completely broken down. Confidence in the financial services sector has been shattered."