World stock markets have plunged despite government bank bail-outs in the US and Europe. In the UK, the FTSE 100 fell 391.1 points, or 7.85%, to close at 4,589.2. In effect, £93.4bn has been wiped off the value of the index's shares. Yesterday's fall was bigger than the slides seen in the wake of the September 11 attacks on the US and the 1987 stock market crash.
Meanwhile Asian stocks has opened down sharply amid investor panic that global governments may not be able to stem the financial crisis.
EU leaders have agreed to act more closely to deal with the economic crisis. The UK Chancellor Alistair Darling says the government will do whatever is necessary to ensure stability of the financial system.
Germany earlier appeared to announce an unlimited guarantee for private savings - though later said this was not the case and had instead given only a "political commitment" that savers would not lose deposits. This followed news that the country's finance ministry had agreed a 50bn euro ($68bn; £38.7bn) plan to save one of the country's biggest banks, Hypo Real Estate.
Austria, Denmark Greece and Sweden have also moved to bolster protection of bank accounts - a tactic first started by Ireland, who were widely criticized at the time.
Despite soundbites from European leaders about "unity" it seems self-presavation is now the name of the game.
So much for greater co-ordination between the EU governments....
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