Reports that Royal Bank of Scotland had approached the UK government over a possible capital injection sent their shares tumbling.

The shares fell as low as 90p. It was reported that other lenders may also require support from public funds. Shares in Lloyds TSB, HBOS and Barclays were down between 10 and 15 per cent on these reports. Meanwhile European Union finance ministers met on Tuesday in Luxembourg in an attempt to find a common response to the current crisis.