Banks drag FTSE into the red

The FTSE dropped 0.72% to 5,535.8 in early trading as speculation over government plans to introduce a new bank windfall tax hit shares in the sector.

Business secretary Vine Cable will hit out at bankers in a speech later today, saying the capitalist system is tainted and kills competition. Aviva led the losers list with the insurer down 3.72% or 15.5 points to 401.5p while Lloyds slipped 2.18% to 75.22p. A total of 85 of the 100 blue chip stocks dipped into negative territory. Top of the early standings are Randgold, up 1.74% to 6420, after miners were boosted by the weak dollar. Elsewhere, African Barrick, Gold Xstrata and Fresnillo all advanced. Imperial is another of the day's early winners after the company said it is on tr...