* FTSE 100 down 3.3 pct
* Banks, financials hit by B&B nationalisation
* Miners, energy stocks slide on falling commodities
By Simon Falush
LONDON, Sept 29 (Reuters) - Britain's FTSE 100 <>
tumbled 3.3 percent by midday on Monday as the nationalisation
of Bradford & Bingley <BB.L> dealt another blow to a reeling
bank sector ahead of a U.S. lawmaker vote on a rescue package.
By 1055 GMT the FTSE 100 <> was down 167.3 points at
4921.2, after losing 2.1 percent on Friday. The blue-chip index
is down 12.7 percent in September, on track for its biggest
monthly fall since the stock market crash of 1987.
Nervousness about the UK banking sector increased after the
British government nationalised Bradford & Bingley, making the
buy-to-let mortgage lender the second bank to be taken into
public ownership this year. []
Royal Bank of Scotland <RBS.L>, Lloyds TSB <LLOY.L>,
Barclays <BARC.L> and HBOS <HBOS.L> fell between 6.7 and 15
percent.
The FTSE 350 banking index <.FTNMX8350> fell 5.9 percent.
Other financial stocks were also lower with London Stock
Exchange <LSE.L> down 3.7 and insurers Aviva <AV.L> and
Prudential <PRU.L> down 3.8 and 4.8 percent, respectively.
In the United States, the $700 billion government fund to
buy bad debt is set to be voted through later on Monday but this
seemed to do little to ease anxiety about the health of the
global financial system.
"There was enthusiasm last week about the (rescue package)
but investors have had time to reflect and realise that there is
no quick fix, and that while this may be a step in the right
direction, it doesn't change the fundamentals," said Tim Rees,
director of UK equities at Insight Asset Management.
ICAP <IAP.L>, the world's largest interdealer broker, topped
the list of blue-chip losers, falling 19 percent even as it said
it expected full-year profits to be ahead of last year.
The stock has fallen to its lowest level in more than three
years. Analysts said the prospect of its customer base being
whittled down by bank consolidation and its caution on profit
growth has weighed on the stock.
LENDING COLLAPSES
Further underlining the grim outlook for the UK economy and
the banking, and housebuilding sectors, net mortgage lending
collapsed in August and approvals for new home loans fell to a
new low, data from the Bank of England showed [].
Taylor Wimpey <TW.L>, listed on the FTSE 250 <>,
tumbled 13.4 percent while Barratt Developments <BDEV.L> lost
7.6 percent and Bovis Homes <BVS.L> slid 4.4 percent.
The darkening economic outlook helped push the pound nearly
2.5 percent lower against the dollar <GBP=>, on track for its
biggest one-day fall in 15 years.
Miners also took a knock, hit by metals price falls on the
rising dollar and concern the global economy may experience a
significant slowdown.
Rio Tinto <RIO.L>, Anglo American <AAL.L>, Xstrata <XTA.L>
Kazakhmys <KAZ.L> and Eurasian Natural Resources <ENRC.L> fell
between 4.6 and 10.7 percent.
Energy stocks were pressured as oil extended recent losses,
falling over $3 to below $104 a barrel <CLc1>. BP <BP.L> fell
2.3 percent while Royal Dutch Shell <RDSa.L> fell 2.1 percent.
Thomas Cook <TGC.L> gained 4 percent after it said it had
withdrawn from talks with TUI Travel <TT.L> and Lufthansa
<LHAG.DE> about a merger of its charter airline with TUIfly and
Germanwings.
Cadbury <CBRY.L> fell 1.4 percent after the confectionary
group said it had recalled all 11 of its chocolate products made
in Beijing on concern over the possibility of contamination with
melamine in its Chinese plant. []
(Editing by Sue Thomas)
