US to announce a ‘comprehensive’ plan for easing global financial crisis

The US officials say that a ‘comprehensive’ plan to ease global financial crisis will be soon hammered out.

After meeting members of Congress, US Treasury Secretary Henry Paulson said that legislation was required to rid US banks from their bad assets.

The announcement splashed a new wave of life in many stock markets all around the world particularly Asian stock markets.

In early trading, Japan’s Nikkei climbed to 2.8%. Similarly, the Shanghai Composite was 9.3% up by mid-morning and Hang Seng in Hong Kong climbed 7% at early hours.

The reports of the rescue plan also surged US stocks in early hours as Dow Jones got 3.86% increase to 11,019.69. An unstable state has been observed in the World markets after huge disturbance among banks.

The current week was replete with banks’ collapses and acquisition as Lehman Brothers collapsed earlier this week , Insurance giant AIG was bailed out by the Federal Reserve, Bank of America acquired Merrill Lynch and HBOS was acquired by the Lloyds TSB.

Congress leaders were briefed on the plans that Mr Paulson and Federal Reserve Chairman Ben Bernanke considering to be implemented.

“We are considering having a comprehensive approach that needs legislation to deal with illiquid assets on the balance sheets of financial institutions,” Mr Paulson stated.

He added that the basic reason of the stress in the markets was the correction and price declines in real estate.