Bill Kristol proposes, among other options:

Improve on both Paulson and House Republicans with a new offer. This, based on my admittedly imperfect understanding of all this (but McCain has access to people with really good understanding), might be a combination of Larry Lindsey’s refinance-home-owners proposal and Lucian Bebchuk’s (and others’) proposal for direct bank recapitalization through Treasury security purchases and right offerings to shareholders. Introducing a new alternative at the eleventh hour might seem pretty bold and risky, but a) it’s probably better policy than what’s on the table now, b) who’s to say it couldn’t get a lot of support quickly, and c) there’s something attractive about opposing Henry Paulson and Barney Frank at once (sort of like opposing both Donald Rumsfeld and Harry Reid on Iraq a couple of years ago), and proposing a better course. It might be worth at least trying this alternative today, rather than focusing exclusively on trying to broker a deal between warring parties both of whose ideas aren’t great