But the measure may not be enough to save two more financial giants.
U.S. Stocks rallied Thursday following news federal regulators may create a separate agency to take on the financial sector's bad debt.
The latest step to boost confidence in a market reeling from in the worst financial crisis since the Great Depression.
Early in the day, central banks worldwide injected another 180 billion dollars to stimulate the paralyzed credit lending markets.
"These actions are necessary, and they're important. And the markets are adjusting to them," said President Bush.
Those serious challenges include the failure or forced sale of some of the biggest and oldest investment banks, mortgage companies, and one giant global insurance group.
The latest big investment bank on the line, New York based Morgan Stanley with 45,000 employee worldwide, now reportedly in merger talks with Wachovia to avoid bankruptcy.
Ailing thrift bank Washington Mutual is also looking to sell, while employees nervously wait.
"Seeing what's happened to Bear Sterns and Lehman and even AIG, you can't help but be concerned," said Laura Skinsman, a Washington Mutal employee.
New Jersey Governor Jon Corzine and former chief executive of Goldman Sachs says Wall Street's loss will create a ripple effect Nationwide.
"Main street was already in trouble with the housing crisis and rising fuel costs and declining incomes, but now they're gonna have a very serious credit crunch that's gonna impact jobs and is a very serious problem," said Democratic New Jersey Governor Jon Corzine.
To help stabilize the turbulent markets, federal regulators broadened measures to rein in abusive practices that would drive down stock prices when companies are at their most vulnerable.
New York'S Attorney General also announced it will investigate complaints of manipulative practices and short selling that might be affecting market volatility and adding to a company's downfall.