The morning of Wednesday 19 March 2008 will be remembered as the day the City's rumour mill spun out of control like never before. Here is how:

8am HBOS shares jump to 485p on opening trading, reflecting the rate cut by the US Federal Reserve.

8.14am FTSE 100 jumps to a peak of 5653.6, up 47.8 points, also in appreciation of the Fed move.

8.31am HBOS shares start to wobble between 470p and 480p.

8.33am HBOS shares plunge as short-sellers launch sudden and dramatic raid on the stock. Coincides with rumours about the bank's solvency.

8.51am The bank's shares plunge to 400¼p. FTSE 100 dives to 5570. Rumours sweep the markets about crisis meetings at the Bank of England.

8.57am FTSE and HBOS stage partial bounceback, with the bank reaching 451½p before plunging again to 423p as short-sellers pile back in.

9.02am HBOS declares it has no liquidity crisis. Stresses it is a diversified business with an "exceptionally sound" balance-sheet. The words highlight the difference between HBOS and Bear Stearns, which was massively focused on mortgage bonds. The shares climb back up to 459p before drifting down again. FTSE also drifts.

10.15am Bank of England communications department phones news organisations including the Evening Standard to kill off rumours of crisis meetings and HBOS cash shortfalls. Frenzied roiling of HBOS shares calms with gradual drift up to around 440p, still 10% down on the day.

11.07am FTSE falls again to 5524.8 point as jitters remain about the banking system. Investors fret about worrying broker notes now circulating the City warning clients of weaknesses in HBOS, Alliance & Leicester and Bradford & Bingley

12.30am FSA confirms it is investigating suspicious trading in UK financial shares. Warns it will not tolerate traders taking advantage of market conditions to commit abuse by spreading false rumours and dealing on the back of them.