Europe shares tumble as bank crisis fear mounts

European shares extended losses on Monday to slump more than 5 percent as concerns about the health of the financial sector mounted and several governments stepped in to rescue banks and ordinary depositors.

A $700 billion package to rescue the U.S. financial sector, passed by the U.S. House of Representatives on its second try on Friday and signed by President George W. Bush into law, also failed to cheer investors.

At 0822 GMT, the FTSEurofirst 300 index of top European shares fell 5.1 percent to 1,033.62 points. The benchmark index lost 1.4 percent last week and is down more than 30 percent so far this year.

Banks took the most points off the index, with Credit Agricole falling 7.7 percent, Dexia slipping 10.9 percent and Societe Generale shedding 6.5 percent.

Commerzbank tumbled 13.8 percent on big volumes.

Oil shares were also big losers, with BP, Royal Dutch Shell and Total all down by around 5.5 percent as crude slipped below $90 a barrel for the first time since February.

U.S. index futures were down between 2.3 and 2.8 percent.