Lawmakers reach agreement on bailout plan
Congressional leaders says an accord has been reached in principle on the plan, which would include protections for the $700 billion in taxpayer money.
WASHINGTON -- Congressional leaders announced today that they have reached an agreement in principle on the framework of a plan to fix Wall Street's financial crisis that would provide protections for the up to $700 billion in taxpayer money at stake.
"We came to some agreements on a lot of the important issues," said Rep. Barney Frank (D-Mass.). "We are on track to pass this."
The leaders did not immediately provide details of the agreement but said that they believe it would able to get the support it needs to pass both chambers of Congress and be signed by the president.
"We will now have a plan that can pass the House, pass the Senate and bring some calm to this crisis that is roiling the markets," said Sen. Robert Bennett (R-Utah), one of the lead negotiators of the deal.
The leaders are scheduled to meet later today with President Bush to finalize details. Presidential candidates Sen. Barack Obama (D-Ill.) and Sen. John McCain (R-Ariz.) did not take part in the congressional negotiations but were expected to take part in the White House meeting.
Democrats had hoped to reach a framework agreement with Republicans before the White House meeting this afternoon, which would rob McCain of an opportunity to claim credit for the deal. The Arizona senator suspended his presidential campaign to fly back to Washington to work on the package.
Frank said he looked forward to going to the White House but that the process no longer needed a kick-start. As negotiators raced the clock in search of a compromise, President Bush used a rare prime-time address to the nation Wednesday night to try to convince a skeptical public and rebellious Republicans that the government must put $700 billion of taxpayers' money at risk to bail out the financial system.
Putting his battered prestige on the line, Bush painted a stark picture of the country's financial condition: "We're in the midst of a serious financial crisis. . . . Our entire economy is in danger," he said. "America could slip into a financial panic."
"This rescue effort is not aimed at preserving any individual company or industry. It is aimed at preserving America's overall economy," Bush said. "It will help American consumers and businesses get credit to meet their daily needs and create jobs. And it will help send a signal to markets around the world that America's financial system is back on track."
