Investors betting on Black Monday-style collapse - BoE

Investors are placing bets on a Black Monday-style crash in the UK stock market at the fastest rate since the collapse of Lehman Brothers in 2008, the Bank of England warns.

The Bank has warned widespread fear over the possible collapse of a sovereign debtor, particularly Greece and Portugal, had sparked a deluge of bets on a 20% fall in the FTSE 100, reports The Daily Telegraph. Its stark warning coincides with a report from the Bank for International Settlements (BIS) showing Britain is dangerously exposed to the Irish and Spanish banking systems, which many fear could be at risk in the next round of the financial crisis. In its Quarterly Bulletin, the Bank of England warned markets were under increased strain following the International Monetary Fund a...