European shares slumped on Monday as nervousness gripped the market after Lehman Brothers filed for bankruptcy protection and a newspaper reported that AIG sought $40 bln from the Federal Reserve. By 0843 GMT, the FTSEurofirst 300 index of top European shares was down 3.8% at 1,118.10 points, its lowest in nearly two months. It is down 26% this year. Out of 314 shares traded on the index, 311 were down. Lehman filed for bankruptcy protection, after trying to finance too many risky assets with too little capital, making it the largest and highest-profile casualty of the global credit crisis. Its shares plummeted 80% in Frankfurt. Financial market woes continued with American International Group, working to stave off rating downgrades and shore up the capital of its holding company, made an unprecedented approach to the U.S. Federal Reserve seeking $40 bln in short-term financing, the New York Times said. AIG officials did not immediately respond to requests for comment.