Guarantees on bank assets, expanded financing for credit markets, capital injections in the form of convertible shares and subsidies for anti-foreclosure programmes will form core components of the financial rescue plan to be announced on Tuesday by Tim Geithner, Treasury secretary.

The main uncertainty revolves around whether there will also be a toxic asset purchase programme to help banks dispose of securities that have already been heavily written down. This still seems likely, though it could be held in reserve. Asset purchase could take the form of a public-private collaboration rather than a wholly government-owned “bad bank”.