I really like this idea at first blush. I'm not sure if it could be implemented fast enough, but I think the idea deserves consideration as we proceed with whatever plan comes out of Congress.
In summary, a debt-for-equity swap partially bails out the weakest assets and creates a huge pool of homogeneous stock for those needing liquidity. The Treasury only injects cash when the pool underperforms. Creditors only swap healthier assets if they need the liquidity.