US to introduce rescue plan to ease financial crisis

US officials said they would hammer out a comprehensive plan to help ease what has become a global financial crisis.



US Treasury Secretary Henry Paulson said legislation would be required to help rid US banks of their bad assets.



He said this is at the heart of the rescue plan, which will be worked out over the weekend.



Stock markets in Asia surged after the announcement, echoing an earlier rally in New York.



World markets have been volatile in the wake of huge upheavals among banks.



Since the start of the week, Lehman Brothers has collapsed, the Federal Reserve has bailed out insurance giant AIG, Merrill Lynch has been acquired by Bank of America and in the UK, Lloyds TSB has acquired HBOS.