Sub-prime problems spook market

The local sharemarket fell yesterday as concerns about the US sub-prime crisis were reignited. The chief of Citigroup in the US, Charles Prince, was forced to resign after the company announced that it planned to take $8 to $11 billion more in credit and other write-downs. The major banks all saw their share prices drop while the local S&P/ASX200 index lost 114.3 points to 6582.3 and more volatility is expected during the week.