♦ The Federal Reserve and Treasury are working with Congress on a sweeping bailout program that would represent the biggest intervention in financial markets since the '30s. Asian and European markets soared on the news. [WSJ, Bloomberg, NYT]
♦ Five banks are now looking at Washington Mutual, including Wells Fargo, JPMorgan Chase and HSBC. [WSJ, Dealbook]
♦ Morgan Stanley's John Mack fought for his life yesterday, lobbying for regulatory changes, twisting arms, and discussing deals with potential partners. China's sovereign wealth fund, China Investment Corp, is now believed in be in discussions to take a 49 percent of Morgan. [WSJ, Marketwatch]

Andrew Cuomo's investigation into short-selling will look into activity related to Lehman Brothers, AIG, Morgan Stanley and Goldman Sachs. [WSJ]
♦ More on the SEC's temporary ban on shortselling. [AP]
♦ Edward Liddy, the new chief executive of AIG, talks about the changes in store for the company. [WSJ]
♦ JPMorgan has stopped trading with Ken Griffin's Citadel because the hedge fund has been poaching traders from the bank. [Dealbook]