The British government has announced a part-nationalisation of the country's eight main banks with a bailout worth up to £50bn.
The government said it would provide taxpayers' money to buy major stakes in the banks.
Watch this morning's news conference on the bailout plan.
London's FTSE index fell 2.8% this morning, minutes after Chancellor of the Exchequer Alistair Darling announced details of the plan.
A further £200bn will be made available by the Bank of England for short-term borrowing to provide liquidity to banks and building societies.
The banks covered under the scheme are Abbey, Barclays, HBOS, HSBC Bank, Lloyds TSB, Nationwide Building Society, Royal Bank of Scotland and Standard Chartered.
The UK Treasury Department said that after consultations with the Bank of England and the Financial Services Authority, it is bringing forward specific and comprehensive measures to ensure the stability of the financial system and to protect ordinary savers, depositors, businesses and borrowers.
Last night at Downing Street, Mr Darling, Prime Minister Gordon Brown, Bank of England Governor Mervyn King and the head of the city watchdog, the FSA, met to put the final touches to the plan.
It will involve £50bn of taxpayers’ money to provide new share capital for the banks as well as a facility to provide funds for day-to-day operations.
