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U.S. stock markets plunged by 4 percent to close at the lowest levels in nearly 12 years, igniting fresh concern over the depth of the financial crisis and where the bear market would find a bottom.

The federal government agreed Monday to provide an additional $30 billion in taxpayer money to the insurer, even as it reported the biggest quarterly loss in history.

American International Group Inc's board approved the latest overhaul of a U.S. government rescue on Sunday that includes $30 billion in new equity and other measures aimed at bolstering the struggling insurer, according to a source familiar with the matter.

American International Group Inc is close to a deal with the U.S. government that would ease the terms of its bailout, provide a further equity commitment and help it pay down debt, a person familiar with the matter said on Saturday.

Wall Street is down sharply lower as investors second-guess Citigroup Inc.'s plans to turn over a big piece of itself to the government.

Citigroup and the U.S. have reached an agreement in which the government will increase its stake in the bank and in return will demand a boardroom shakeup.

The New York Attorney General's office has subpoenaed Bank of America to submit a list of employees who got bonuses and the amounts that the employees received, a spokesman for the New York Attorney General said on Thursday.

Loss included $25.2B in fourth quarter, prompting a government cash injection of $15 billion.

The head of J.P. Morgan Chase's retail banking operations said Thursday that the firm plans to trim 12000 jobs from the headcount of Washington Mutual employees.

The Royal Bank of Scotland will later report what is expected to be the biggest annual loss in UK history.