The AIG Investor Action Group, the lobby group set up to represent those who lost large sums of money in the enhanced money market fund, is asking its members to contribute to a fund in order to appoint lawyers with a view of taking legal action against the banks that sold the fund.

In a letter sent today to AIG clients affected by the losses, the action group said: "We need to establish a fighting fund to carry out the preliminary steps to be taken by the lawyers and for the public relations."