The state we're in ... EU leaders Silvio Berlusconi, Angela Merkel, Nicolas Sarkozy and Gordon Brown meet in Paris
Sipa Press / Rex Features
THE Icelandic government was in crisis talks last night over possible moves to prop up its banking sector with a £7.8billion injection.
There are also concerns about the country’s biggest bank Kaupthing. Any problems in Iceland’s banking could have implications for the UK.
Kaupthing has invested in firms ranging from pubs group Mitchells & Butlers to department store Debenhams.
An estimated 150,000 UK savers are thought to hold money with Icelandic banks.
PM Silvio Berlusconi vowed the government would do “everything in its power” to avoid speculative attacks against banks.
THE German government has guaranteed all private savings accounts as a top mortgage lender faces collapse.
Chancellor Angela Merkel has warned of “a crisis for the entire system”.
AN EXTRA 40,000 people are unemployed in France since August.
The country is officially in recession and President Sarkozy insists the government will “guarantee the security” of banking.
BRITAIN has been devasted by the crash of Northern Rock and Bradford & Bingley.
The short-selling crisis also sank HBOS.
PM Gordon Brown is now under pressure to guarantee savings.
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