FTSE in biggest one-day points fall

By Jon Hopkins

LONDON (Reuters) - The leading share index recorded its biggest ever one-day points fall on Monday with banking and commodity stocks taking a battering as the fallout from financial crisis once again overwhelmed global markets.

The FTSE 100 ended 391.1 points lower at 4,589.2, down 7.8 percent, the third biggest percentage decline, taking the index back to levels not seen for over four years.

No blue chip stock ended in positive territory.

"Another Monday, another banking crisis. Just when the market thinks it has found a base level, there's another jolt to the system." said Manoj Ladwa, senior trader at ETX Capital.

" Black Mondays used to be a once-a-decade event, now they're coming along more regularly than a London bus," Ladwa added.

Banks were among the biggest blue chip fallers with Barclays, Royal Bank of Scotland and HBOS down between 14.7 and 20.5 percent.

Chancellor Alastair Darling told parliament in the afternoon that a Banking Bill will be introduced Tuesday to build on special powers the UK government took in February.

The bill will also give the Bank of England a statutory role to maintain financial stability, the UK finance minister added.