Foreign & Colonial Management, part of Eureko, the alliance of European banks and insurers, has suspended lending securities until the global stock markets regain some normality.

Alan Line, director and head of trading at the UK investment house, said that the driver for the decision was to assist the market in regaining stability following the terrorist attacks in the US and closure of the US equities market. F&C, which has some £6bn (€9.6bn) in lendable assets, will continue to cover failed trades that have already taken place.