Barclays, Standard Chartered shares suspended as checked for suspicious behaviour

Barclays and Standard Chartered shares were suspended yesterday while regulators checked for evidence of suspicious behaviour, such as insider trading, which could have driven wild swings in its market value. This move by the London Stock Exchange further reveals the turmoil for banks both sides of the Atlantic as shares fell for most large banks yesterday amid fresh concerns over the global economy.

Trading in Barclays and Standard Chartered shares was suspended yesterday amid the carnage on financial markets

Shares in Barclays and Standard Chartered were suspended yesterday during a day of carnage on the financial markets.

The two UK lenders saw their shares slump amid fresh concerns about the global economy and the strength of some of the world’s biggest banks.

Trading in Barclays was suspended for eight minutes while regulators checked for evidence of suspicious behaviour, such as insider trading, which could have driven wild swings in its market value.

Trading in Standard Chartered was also suspended briefly.

Barclays eventually closed down 5.3 per cent at 163.9p while emerging markets specialist Standard Chartered fell 5.7 per cent to 427p.

The move from the London Stock Exchange underlined the turmoil for banks on both sides of the Atlantic with Goldman Sachs and Morgan Stanley down more than 6 per cent in early trading.

Royal Bank of Scotland fell 4.63 per cent to 230.7p, HSBC dropped 4.24 per cent to 438.45p, and Lloyds shed 3.95 per cent to finish at 59.36p.

But European bank stocks fared even worse, with Germany’s largest lender, Deutsche Bank, down 9.5 per cent amid concerns about its £5.3billion loss last year and the prospect of more huge losses to come.

Analysts believe that fears about Deutsche’s future have had a knock-on effect on Barclays, with both lenders grappling with similar problems with their investment banks.

The sell-off came amid mounting fears over the strength of the global economy as China slows and other emerging market countries such as Russia, Brazil and South Africa continue to lurch from one crisis to another.