Shares in Metro Bank have plunged sharply after it announced a £350m share placement in an effort to contain a crisis over an accounting error that is now being investigated by regulators.
The bank said it would raise the money to make up for a shortfall in the capital it holds against loans, after it revealed it had misclassified large numbers of commercial loans.
The FCA and the PRA plan to investigate the circumstances and events around this accounting error.
Shares in Metro closed down 15.8 per cent on Tuesday, before the news of the regulators’ probes came to light. On Wednesday morning the shares opened down a further 17.7 per cent.
Metro’s market capitalisation, which reached £3.5bn last March, has now fallen to just over £1bn.
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