THE TELEGRAPH: The banking industry has plunged into unprecedented turmoil as share prices plummeted, knocking billions off the value of some of the High Street's top banks within minutes.
Shares in RBS, the owner of mortgage lender Natwest, plunged more than 39 per cent in early trading - wiping more than £10billion off the value. It had already suffered a fall of 20 per cent on Monday.
Shares in HBOS dropped by as much as 13 per cent, Barclays fell by up to 15 per cent and Lloyds TSB by 21 per cent.
The declines came as British banks told the Government they support its plan to take substantial shareholdings in return for an injection of billions of pounds.
The chief executives of RBS, Barclays, Lloyds TSB and HBOS met the chancellor, Alistair Darling, on Monday night and other senior members of the Tripartite Authorities.
The banks are understood to have told Mr Darling that they broadly back a plan for the Government to take equity stakes in return for capital injections.
RBS declined to comment on its share price movement or the reports of a plea for a Government capital boost.
However, the bank confirmed that Sir Fred Goodwin, the chief executive, was part of the team of banking bosses involved in last night’s meeting with the Chancellor.
A Barclays spokesman said it had “categorically not” requested any capital from the Government.
Analysts have predicted the Government might need to pump between £30bn and £50bn into the banks. Banks in Crisis as Billions Wiped Off Share Prices >>> By Katherine Griffiths and James Quinn | October 7, 2008
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