Bank bailouts by governments mean that the public sector owns a stake in a large number of the world's financial institutions. Although it might be pushing the point to describe bankers as civil servants, it is not far wrong.

However, despite the continuing volatility in the markets, the bailouts have the full support of investment professionals, according to a survey by the CFA Institute. Its poll of more than 5,000 members showed that 75 per cent believed that governments around the world should follow Britain's lead and strengthen the capital base of domestic banks by investing in equity.

What is more, 83 per cent said that if governments were to guarantee all the short-term debts of solvent financial institutions, this would restore the confidence needed for them to begin trading with each other again.

“The severity of the crisis is so serious that now governments are the only ones that can help markets and avoid financial meltdown.” one survey respondent said. “But it is essential that over the next quarter we have a process of ‘cleaning' of banks' (and other investors') balance sheets in a gradual way. It's also important that legislation improves and fixes the huge bugs around world. If we use the next quarter to salve banks and let things go as if they were just trying to survive, it will be a mistake. A long depression could arise, or, worse, another bubble somewhere else.”

There were calls for governments to do even more to help to unfreeze the credit markets. As well as direct investment in banks and the guaranteeing of bank debts, 62 per cent of investors called for central banks to take steps to eliminate insolvent institutions and to instigate recapitalisation of institutions deemed solvent. About 58 per cent also wanted to see a government-backed disclosure of bank assets, asset valuations and value assumptions.

“Full transparency and disclosure by all financial institutions (including hedge funds, private equity, etc.), with an end to secret strategies as a cloak to hide positions, is essential to restoring confidence,” another survey respondent said.

The continuing volatility was blamed on a combination of an unwillingness by commercial banks to lend to each other, worries about the likelihood of a global recession and concern that financial institutions continue to hold assets at values that do not accurately reflect the market.

One respondent said: “Part of what is contributing to volatility is the uncertainty of what government will or will not do. Certainty in this arena would help settle prices, and even if that is lower, it would make a base for future growth. Also, the increased media and press conferences concentrated in this area increase the mob-like psychology of fear and volatility in dramatic ways.”

Neither the end of the ban on short-selling in the United States nor the US Government's slowness to implement its bailout was thought to be influencing the markets greatly.

Finally, at least one respondent called for governments to introduce more regulation: “If change to the regulatory framework is not made, then we will be operating in a framework in the future no different than the current one.”

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