Disgruntled investors in Royal Bank of Scotland will gather today to consider a possible legal action against the former directors of the part-nationalised bank.

The UK Shareholders Association (UKSA) today said it was forming an action group to represent smaller investors in Lloyds Banking Group in the wake of its latest bail-out from British taxpayers.

Bosses of Lloyds Banking Group were facing calls to quit today as the stock market prepared to give its verdict on the latest multi-billion pound bailout by the British taxpayer.

Shareholders of beleaguered Northern Rock were facing up to more heavy losses today after the company admitted rescue plans for the group were “materially below” the company’s current value.

Troubled British mortgage lender Northern Rock is today in talks over its future, including the possibility of a buyout.