European governments offer $2 trillion for banks

European governments say they are putting nearly $2 trillion on the line to protect the continent’s banks through guarantees and other emergency measures.

Pledges by Britain, Germany, France, Spain, Austria and Portugal in recent days have reached a total of $1.96 trillion. The sums are considered a maximum, and might not all be spent if the financial crisis eases.

Many of the pledges came Monday, a day after the 15 nations that use the euro currency agreed on an unprecedented bank rescue plan.

Europe’s most unified response yet to the financial crisis dwarfs the Bush administration’s $700 billion rescue program.

The plan is helping calm markets after they dived last week. European and Asian stocks are up.