The UK government is poised to announce details of a comprehensive £50bn rescue package for the banking system. According to reports, it will include a proposal to use taxpayers' money to invest in banks - in effect part nationalising them.
Government to unveil bank rescue
Meanwhile customers of the Icesave internet bank have been warned they may have to claim compensation for money held in their savings accounts. Authorities are preparing for the bank's parent in Iceland, Landsbanki, to be declared insolvent.
Icesave savers warned on accounts
Stock markets across the world remain volatile as investors continue to worry about the strength of financial institutions. In Germany, state-owned savings banks reported a flood of new deposits as people look for safer accounts which are insured for 100% of their value.
In Iceland the Prime Minister, Geir Haarde, has confirmed that negotiations have been going on with Russia for a huge loan to support Iceland's troubled banking system. Mr Haarde said a delegation from Iceland would go to Moscow in the next couple of days to finalise the deal. He thanked Moscow for its offer of more than $5bn in emergency loans.
Credit crisis: World in turmoil
At this rate, putting one's money under the mattress will seem a safer alternative....
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