Banking and mining stocks led a sea of red on traders’ screens during the morning session of London’s blue chip index today.

There were no gains (0925 hrs) as investors responded to renewed fears relating to Greece and the Euro and banks slid in reaction to the Independent Commission on Banking report.

Eurasian Natural Resources (ENR.L) led the slide, down 5.2 per cent at 611.5 pence just hours after newspaper reports that the group’s Kazakh founder is making a bid to become the group’s chairman.

Alexander Machkevich was reported to be seeking clearance from the UK Listing Authority to join the group’s board as chairman with Deutsche Bank (the group’s broker) making the application three weeks ago.

Kazakhyms (KAZ.L) was the second worst affected of the miners, dropping 5.21 per cent at 965 pence, followed by Antofagasta, down 5.04 per cent at 1,224 pence.

Royal Bank of Scotland (RBS.L) was the worst affected of the banking stocks, dropping 5.21 per cent, meaning investors can now pick up one share in the nationalised banking group for just 20.4 pence per share.

The UK banks’ trade association – the BBA – said further reforms needed careful analysis and comparison with international requirements.

An anonymous statement released to market, suggested that UK banks were ‘well on the way’ to implementing the sweeping reforms and hinted that the full impact any further reforms on the economy, the recovery and banks' ability to support customers may not yet be fully understood.

Lloyds Banking Group (LLOY.L) was also down 2.8 per cent at 30.16 pence while Barclays (BARC.L) dipped 3.78 per cent at 138.5 pence.