Banking crisis wipes billions off companies

Harvey Jones

- 

BILLIONS were wiped off UK shares and pension yesterday as Deutsche Bank became the latest funds financial giant to get dragged into the banking crisis.

The German behemoth's stock fell almost 15 per cent.

It was dumped as its credit default swaps, which insure debt against default, spiked to a four-year high.

Other European banks were also sold off with the Euro Stoxx banks index down almost five per cent by mid-morning.

London's FTSE 100 dived 2.1 per cent to 7,336.20, but recovered slightly to close at 7,405.45, an overall drop of 1.26 per cent.