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It would mark the first time the government has taken equity ownership in banks in this manner since a similar programme was employed during the Great Depression.

Mr Paulson said the government’s programme would be designed to complement the efforts of banks to raise fresh capital from private sources.

He said the government’s stock purchases would be of non-voting shares so that the government will not have power to run the companies.

The purchase of equity stakes in companies would be in addition to the main thrust of the rescue effort, which is to purchase distressed assets from financial institutions in a bid to thaw frozen credit markets and to get banks to resume more normal lending operations.

The Chancellor, Alistair Darling, who is attending the meeting, said: "We like everybody else have been affected by turbulence the like of which we have never seen.

"We need to strengthen the financial system. If international co-operation is to mean anything it means governments need to move on from talking about a general approach and actually doing something to resolve the problems that we face."

Mr King, the Governor of the Bank of England, said: "Central banks will work together as we demonstrated this week, to ensure sufficient short term liquidity is provided to stabilise banking systems. But it is also vital that governments work together to ensure their banking systems are recapitalised to enable them to lend to finance spending in the real economy."

The announcements made so far have been welcomed by analysts but they urged greater clarity on the specific action which governments are prepared to take.

Justin Urquhart Stewart, of Seven Investment Management, said: “Warm platitudes don’t make a market.

“It’s very nice of them to come up with broad generalisations of things we already know, but that doesn’t solve the immediate issue. The immediate issue is the banking crisis.

“The way to go about it is to look at the issues. The banking system relies on trust and confidence.

“For trust it needs solidity, if not from assets then from the government. Confidence comes on the basis that there is enough cash there to be able to operate.”

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