Barclays, Lloyds and RBS sit tight as rumors swirl that the government will buy equity stakes.

Rate-cut hopes fail to improve confidence in money markets, where interbank lending remains high.

Commodities markets steadied on Tuesday after sharp falls in the previous session amid the ongoing storm sweeping global financial markets

Shares in Royal Bank of Scotland plunged on reports that it had approached the UK government about a capital injection, wiping out initial gains for UK and European equities after Monday's dizzying sell-off. Australia's rate cut helped sentiment in Asia

The small island takes control of Landsbanki to offset a potential catastrophe.