Easy. Close it or suspend trading.
From the Sunday Times
THE government will launch the biggest rescue of Britain’s high-street banks tomorrow when the UK’s four biggest institutions ask for a £35 billion financial lifeline.
The unprecedented move will make the government the biggest shareholder in at least two banks.
Royal Bank of Scotland (RBS), which has seen its market value fall to below £12 billion, is to ask ministers to underwrite a £15 billion cash call.
Halifax Bank of Scotland (HBOS), Britain’s biggest provider of mortgages, is seeking up to £10 billion.
Lloyds TSB, which is in the process of acquiring HBOS in a rescue merger, wants £7 billion, while Barclays needs £3 billion.
The scale of the fundraising could lead to trading at the London stock market being suspended. This would give time for the market to digest the impact of the moves.
The Sunday Telegraph takes a slightly different line
Banking shares across the G7 nations could be suspended tomorrow as Government prepares to take a £35bn equity stake in four of the UK’s high street banks.
Treasury sources confirmed that the Government had drawn up plans to take on a majority stake in Royal Bank of Scotland and big holdings in Lloyds TSB, HBOS and Barclays under its £500bn plan to bail out the banking industry.
Talks were continuing this weekend, added the source, warning that it was a fast-moving environment.
The Government is expected to invest £12bn in RBS, £10bn in HBOS, £7bn in Lloyds TSB and £3bn in Barclays, following request for the emergency funding from the banks.
Analysts believe a further 20 per cent fall in bank shares this week would leave the Government with little option but to nationalise virtually the entire sector.
Update: Tel Aviv, one of the few markets open today, ends with modest-ish losses.
JERUSALEM, Oct 12 (Reuters) – Israeli shares fell nearly 4 percent on Sunday but losses were cut by more than half after steep losses early in the session following large declines last week globally.
In the first trading day since last Tuesday, the blue chip Tel Aviv 25 index .TA25 closed 3.8 percent lower, while the broader TA-100 index .TA100 fell 4.6 percent.