Capita Plc slumped the most on record after saying it would halt dividend payouts and sell shares to raise capital, triggering further concerns over the state of Britain’s outsourcing sector just two weeks after Carillion Plc collapsed, Bloomberg News reported. London-based Capita, whose customers include the U.K. government as well as firms like Telefonica S.A.’s O2 and retailer Marks & Spencer Group Plc, will seek to raise as much as 700 million pounds ($993.8 million) and plans to sell some non-core assets. The stock fell as much as 46 percent.

Some borrowers with interest-only mortgages may lose their homes as a result of shortfalls in repayment plans, the U.K.’s Financial Conduct Authority warned. The FCA has identified three peaks in interest-only mortgage repayments, the first of which is currently underway, Bloomberg News reported. Defaults are less likely in the present wave of maturities because the homeowners are approaching retirement and have higher incomes. The next two peaks, from 2027 through 2028 and in 2032, are more at risk of shortfalls, the regulator said.

Top executives at Royal Bank of Scotland say they will no longer fight the main conclusions and recommendations of a withering independent review of alleged mistreatment of small business customers by the bank, the Financial Times reported. Sir Howard Davies, the chairman, said during a bruising hearing before MPs on Tuesday that RBS “no longer thinks it is useful to have an argument” with the UK’s Financial Conduct Authority about the review of the bank’s Global Restructuring Group.

The U.K. Financial Reporting Council opened a probe into KPMG LLP’s audits of Carillion Plc, after the builder collapsed under a mountain of debt earlier this month, Bloomberg News reported. The FRC will examine KPMG’s work from 2014 and whether the auditor breached any "ethical and technical standards," the accounting regulator said in a statement Monday. The FRC will also look at how KPMG recognized revenue on significant contracts and its accounting for pensions. Carillion, a U.K.

British construction outsourcing company Carillion Plc attempted to “wriggle out of its obligations” to pensioners for the last decade, according to Parliament’s Work and Pensions Select Committee. The committee chair, Frank Field, condemned Carillion’s inability to perform its pension obligations while “shelling out dividends and handsome pay packets for those at the top,” Reuters reported.

A London court has sided with Franklin Templeton Investment Management and Russia's Sberbank in a ruling relating to International Bank of Azerbaijan's (IBA) debt restructuring, potentially delaying the process, the International New York Times reported on a Reuters story. Last year, state-owned IBA proposed a plan to restructure $3.3 billion of its debt and said in July it had received approval from creditors holding 93.9 percent of the affected credits.

Ministers are coming under increased pressure to release risk assessments on Carillion made in the months before the contractor’s collapse, the Financial Times reported. The Labour opposition has used an obscure piece of Parliamentary procedure to try to force the government to publish how they perceived the condition of all 30 or so “strategic suppliers” to the state. This “motion for a return” was passed by default on Wednesday night without a vote in the House of Commons.

The UK is one of the only major markets where house prices are unlikely to grow in 2018, according to new forecasts from Fitch Ratings, the Financial Times reported. The ratings agency’s annual housing and mortgage outlook predicted average prices in the UK will be flat this year, with declines in London and the South East due to “Brexit uncertainty, stretched affordabliity and low income growth”. The only housing markets assessed by Fitch with a worse outlook for 2018 were Greece, where it predicted a 2 per cent decline, and Norway, where prices could drop 5 per cent.

Private equity groups and distressed buyout firms are circling collapsed British construction company Carillion to cherry-pick assets from one of the UK’s most politically sensitive corporate failures, the Financial Times reported. The interest from private investors — including the Canadian fund manager Brookfield and British private equity group Endless, which specialises in turnrounds — comes as the government struggles to protect thousands of jobs left at risk by Carillion’s liquidation.

Five UK banks are facing heavy losses on loans to Carillion, after irreconcilable differences between the company, its lenders and the government pushed the UK construction and services group into liquidation on Monday, sources said. Royal Bank of Scotland (RBS), HSBC, Santander, Lloyds and Barclays are among the most heavily exposed after providing £140m of emergency loans in September 2017 and are also lenders on a £790m revolving credit facility, Reuters reported.