FTSE slumps 8.9 pct, capping worst week since 1987

* FTSE 100 slumps 8.9 pct; down over 24 pct for the week

* Financials plunge as bail-out, rate cuts fail to help

* Commodity shares drop on global recession fears

(For more on the financial crisis, click on [nCRISIS])

By Jon Hopkins

LONDON, Oct 10 (Reuters) - Britain's top share index ended 8.9 percent lower Friday contributing to a 24 percent slump for the week, the second biggest weekly fall ever, as investors ran scared from the spectre of a full global recession. The FTSE 100 .FTSE closed down 381.7 points at 3,932.1, its second biggest points loss ever, dropping below the 4,000 level for the first time in more than five years after its worst week since the crash of October 1987.

With another 90 billion pounds wiped off the FTSE 100's value Friday, there was just one gainer -- news and information provider Thomson Reuters (TRIL.L), up a penny.

"The FTSE 100 went below 4,000 today, a level it first achieved in September 1996, that means if you invested in equities 12 years ago, you've seen no gain, which is unbelievable," said Manoj Ladwa, senior trader at ETX Capital. Banks were the top-weighted losers, with the FTSE 350 banks index .FTNMX8350 shedding more than 11.5 percent.

Barclays (BARC.L), Royal Bank of Scotland (RBS.L), HSBC (HSBA.L), HBOS (HBOS.L), Lloyds TSB (LLOY.L) and Standard Chartered (STAN.L) were down between 8.1 percent and 25.3 percent.  Continued...