The world's leading nations stepped up their efforts Sunday to stem the fallout from the worst global financial crisis in decades.
After days of singular responses, officials the world over were scrambling to get out ahead of growing expectations for more aggressive and coordinated action to prop up banks. Stock markets have plummeted in recent days as anxiety over the credit crisis - which began in the implosion of U.S. housing prices - has spread worldwide.
In the most dramatic move, the leaders of 15 European nations - gathering in Paris at an emergency meeting - agreed to a wide-ranging plan to shore up troubled banks by adding capital through investment and by guaranteeing inter-bank lending, said French President Nicolas Sarkozy.
"We want to give ... banks the means to lend, to support the economy to enable households to borrow for mortgages or consumption and give companies the means necessary to invest for growth," said Sarkozy, who also holds the rotating European Union presidency.
The 15 nations also said they would protect individual depositors' accounts and move to ease accounting regulations that determine how assets are valued, removing a requirement that they be based on market prices - so-called "mark-to-market" accounting.
Sarkozy announced the agreement after a meeting of leaders of the Eurozone countries, which use the euro. He said France, Germany and Italy will hold Cabinet meetings on Monday and will announce their plans.
"These measures will be implemented in France without delay," said Sarkozy.
Earlier in the day, Sarkozy met with British Prime Minister Gordon Brown. The British Treasury and some of the nation's biggest banks are expected to unveil details of a capital plan early Monday.
Other countries also took fresh action Sunday to support their economies. Australia, New Zealand, the United Arab Emirates and Saudi Arabia have all reportedly moved to guarantee bank deposits. Global markets have taken a beating as the financial crisis deepened around the world.
