The London market endured a turbulent start to the week as bank shares came under pressure following a profits warning from lender Bradford & Bingley.
The buy-to-let specialist's shares fell 24% as a gloomy trading update was accompanied by a restructuring of its fundraising plans and the sale of a 23% stake to a private equity buyer.
The wider FTSE 100 Index was trading below the 6,000 mark for the first time since the end of April for much of the session. It eventually closed 45.9 points lower at 6007.6 as heavily-weighted mining shares lent some support.
HBOS was the leading Footsie faller on B&B's news, nursing a 14% loss before the lender eased investor concerns by stating that its own rights issue remained on track and that current trading was satisfactory.
Shares were still 10% or 40p lower at 360p, although RBS shares fared better, falling just 2.5p to 226p after it stressed UK buy-to-let mortgages only represented 1% of its UK loan portfolio.
But Alliance & Leicester also featured at the top of the fallers board as analysts worried that the bank could face the same funding difficulties as Bradford & Bingley. Shares were more than 5% lower, off 22.25p at 403p.
In the FTSE 250 Index, Bradford & Bingley fell 21.25p to 67p - although that was still above the amended rights issue price of 55p a share, after the group restructured its cash call to shareholders.
The firm - which reached a low of 60p at one point today - now plans to raise £258 million from the rights issue and £179 million from the sale to US buyout firm Texas Pacific.
But this fall was exceeded by newspaper publisher Johnston Press, which fell 40.25p to 72.75p - or 36% - as the stock went ex-rights after shareholders approved a cash call on Friday.
Another stock due to ask shareholders for cash, Imperial Tobacco, was also impacted by the uncertainty, with the stock almost 3% or 55p lower at 1970p.
The leading Footsie riser was oil and gas firm Tullow Oil, which gained 2% or 22.5p to 912.5p after positive comments on the sector from Morgan Stanley.
Meanwhile, nuclear power firm and bid target British Energy added 14p to 748p after analysts speculated over possible interest from Spanish company Iberdrola.
In the second tier Imperial Energy was the leading riser after a discovery in Russia sent it 60p higher to 1040p, or 6%.
Also faring well in the FTSE 250 was internet gambling firm PartyGaming, up amid continued speculation that it had reached a settlement with the US Department of Justice relating to charges under US betting regulations. This could remove a hurdle to a possible bid, causing shares to rise almost 5% or 13.5p to 300p.
The four leading Footsie risers were Tullow Oil up 22.5p to 912.5p, Compass ahead 9p at 384p, British Energy up 14p to 748p and Rio Tinto ahead 115p at 6170p.
The four leading fallers were HBOS down 40p to 360p, London Stock Exchange off 68.5p at 958.5p, Alliance & Leicester down 22.25p to 403p and FirstGroup off 21.5p at 508p.