Credit rating agency Moody's has downgraded 15 financial institutions overnight, including major UK and US banks.
Rating agency Moody's is preparing to downgrade several UK banks this evening, including RBS, Barclays and HSBC, according to reports.
A top official at the Financial Services Authority (FSA) has warned Britain's four largest banks face more questions over their sale of interest rate hedges to small business customers.
The country's major banks are sitting on £40bn of undeclared losses that are stopping them lending to businesses and households, a report has claimed.
HSBC has "postponed indefinitely" plans to move its headquarters from London to Hong Kong, its chief executive said.
UK banking shares dragged the FTSE 100 lower this morning as sentiment struggled following J.P. Morgan's revelation that it lost $2bn in a trade which went awry.