Major British banks are likely to announce their plans to recapitalise tomorrow in a move which could see the government take major stakes in several lenders.
Banks were in crisis talks with the government and regulators today to determine how much capital each needs from the £50 billion (€63.5bn) offered by Britain last week.
An announcement is expected before the market opens tomorrow but details are still being fine-tuned, according to sources.
The Sunday Times said Royal Bank of Scotland, HBOS, Lloyds TSB and Barclays could ask for a combined £35 billion (€44.4bn) lifeline.
RBS may need at least £10bn (€12bn), HBOS over £5bn (€6.35bn) and Lloyds and Barclays more than £3bn (€3.8bn) apiece, according to industry sources and analysts' estimates.
That could result in the government becoming the biggest shareholder - and even a majority investor - in RBS and HBOS.
British finance minister Alistair Darling, attending a G7 finance ministers' meeting in Washington yesterday, said the government was to give more details early this week about its already announced £400bn (€507.9bn) banking rescue plan.
