Banking shares drive down London stock market

Special Report:Global Financial Crisis　

LONDON, Dec. 12 (Chinese media) -- The London Stock market closed lower on Friday after the U.S. Senate had failed to agree on a bailout of the country's car manufacturers.

The FTSE index of leading shares dropped 108.34 points, or 2.47percent, to close at 4280.35.

HBOS shares led the losers by shedding 22.95 percent after the bank said it was operating in "increasingly difficult market conditions" and bad debts are rising.

Shares of the Lloyds TSB Group was also down by 17.78 percent to be followed by Royal Bank of Scotland Group, which lost 15.13 percent.