The entire UK economy is in real crisis right now as the Royal Bank of Scotland announced a loss of  £28 billion which records as the biggest loss ever in the history of Britain. Today bank shares crashed and this is mainly due to the said RBS loss.

RBS fell by 66 percent or 23.10p to 11.60p, its worst loss since two decades ago. RBS also owns NatWest.

Lloyds Banking Group also suffered huge loss as it closed down 33.4p or 33 percent, at 65p. It was the first trading day of LBG since it took control of HBOS.

Fresh  from its 13 percent fall days ago, HSBC shares dropped by 34.75p to 501. Despite having a good start, Barclays still fell by 10p at 88p.

This latest crash of bank shares eclipsed the latest efforts of the Prime Minister to come up with another  rescue package and help the problematic financial system of the country.

As the situation is still not under the Government’s control, experts say that nationalisation appears to be inevitable.

“Sentiment is downbeat with confidence at zero. Frankly, investors are saying they are desperate to see audited accounts, spelling out in words of one syllable, the losses incurred by the individual banks in this most important of sectors, ” David Buik of BGC Partners said.