Germany’s financial sector was in turmoil on Monday after Hypo Real Estate, one of its biggest lenders, had to be rescued by other banks and the government to solve a €50bn ($72bn, £40bn) liquidity crisis.

Shares in HRE plunged more than 70 per cent and other banking stocks nosedived after the intervention, the most serious sign of strain in Germany’s financial sector since the collapse of Lehman Brothers aggravated the global credit crisis this month.