The US has announced details of a plan to buy up to $1 trillion (£686bn) worth of toxic assets to help repair banks' balance sheets.
The "Public-Private Investment Programme" will purchase the troubled mortgages and securities that have been at the root of the credit crunch.
The Treasury has committed $75bn to $100bn to the programme and said the private sector would also contribute.
Investors welcomed the news, with stocks rising in Europe and Asia.
The Treasury said the plan would help the financial system recover.
US banks still hold many mortgage-related assets that they cannot value or sell.
Having so many of so-called toxic assets on their books has made them reluctant to lend, causing the financial system to freeze up, and pushing the economy further into recession.
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