FT.com / In depth - Stocks soar on rescue hopes:
"...The US Treasury said the meeting discussed a “comprehensive approach to address the illiquid assets on bank balance sheets that are at the underlying source of the current stresses in our financial institutions and financial markets.......Treasury and Fed officials discussed the idea of creating a government-sponsored vehicle to deal with toxic assets......it appears that the terrifying events of the past week may have changed the political landscape so profoundly as to make RTC-type legislation possible......Many expect further giant liquidity operations in the coming days. “It really felt like we were teetering on the brink of absolute disaster yesterday and it was still pretty grim at the start of today,” said a senior liquidity manager at one large European bank."