There has been a further deterioration in the euro debt crisis, with shares on both the Italian and Spanish markets falling sharply.
The Spanish 10-year debt yield peaked above 7.22%, rising sharply after the 17 eurozone finance ministers approved a 100bn euro (£77.8bn) bank bailout deal.
While the turmoil continued within global finance, the Bank of England sought to further defend its role in the interest rate-rigging scandal of Libor.
It has published a host of emails that showed it put pressure on the bankers' body responsible for the contested Libor benchmark in 2008 and then signed off on proposed changes.
Governor Mervyn King, who at a Treasury Select Committee hearing this week came under fire over a lack of oversight of the widely used benchmark during the credit crisis, had called an initial plan by the group "wholly inadequate".
A debate sparked by the New York Federal Reserve led to some tweaks to the way Libor was set late in 2008, the emails between King, his deputy Paul Tucker and Angela Knight - the head of the British Bankers Association (BBA) – showed.
But there is no evidence of any follow-up after the BBA announced the changes in December 2008.
Meanwhile, prosecutors in southern Italy have opened a criminal probe into possible manipulation of Euribor, the benchmark euro-priced counterpart of Libor.
And according to the mayor of regional capital Palermo, the misery caused by financial crisis could spark a "civil war" in the southern island of Sicily.
"Because of an explosive mix of despair felt by many families and the stranglehold of organised crime, a civil war could even break out," mayor Leoluca Orlando said.
"Sicily is the Greece of Italy," Mr Orlando, a member of the anti-corruption Italy of Values party and a staunch anti-Mafia champion, said.
"Many businesses are shutting, families on low incomes can no longer pay their electricity bills," he said.
On Tuesday, Prime Minister Mario Monti expressed concern that the region ran the risk of bankruptcy.
Sicily is in debt to the tune of 5bn euro (£3.8bn) and in the Sicilian capital Palermo, the deficit stands at 500m euro (£388m).