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Investors dumped stocks in Societe Generale after the firm failed to meet analyst income targets in its latest quarterly results fuelling fears of an imminent European banking crisis.



Britain is feeling the impact as the FTSE 100 fell to its worst level in more than four years, dropping by nearly three per cent.



Societe Generale, which also had to put aside £300million (€400m) to deal with prospective fines and legal costs yesterday, is the latest firm to suffer heavy sell-offs in the European banking sector



France and Germany's top stock markets were yesterday down by more than three and two per cent respectively.



Germany's flagship bank Deutsche saw another seven per cent dive in its share price, despite just the firm's chief executive insisting just two days ago that its balance sheet is 'rock solid'.



Summarising yesterday morning's trading Connor Campbell, financial analyst at SpreedEx.com, said: "The blood of European banks drowns markets this Thursday morning.

"Whilst not quite at the morning’s truly alarming nadir the European indices are nevertheless caught in an ugly downward spiral led by the panic-ridden, and increasingly bloodless, banking sector."