The US is expected to unveil a comprehensive rescue package today that includes about $250bn for recapitalisation of financial institutions, a form of sovereign guarantee for new bank borrowings and further protection for bank depositors.

The $250bn (£145bn) would represent the entire first tranche of the $700bn appropriated by Congress under the emergency rescue legislation. Hank Paulson, Treasury secretary, is likely to inform Congress that he will draw down the next $100bn for use in asset purchases.

Financial Times, The Times