US lawmakers agree fundamentals of bailout deal
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US lawmakers said on Thursday they had agreed on the fundamentals of a multi-billion dollar historic deal to rescue Wall Street and shore up the world's biggest economy.
"We've reached a fundamental agreement on a set of principles," US Senator Christopher Dodd told reporters in Congress, joined by other leaders after discussions on the $700 billion package demanded by the US government.
After nearly three hours of talks among Democratic and Republican leaders, Dodd, the Senate's banking committee chairman, said both sides would now submit their outline agreement to the Treasury and party colleagues.
The principles give Treasury Secretary Henry Paulson "the authority and funding he needs to act," Dodd said.
"We've also dealt effectively, I think, with the issue of effective oversight, with home ownership preservation, as well as executive compensation."
"It was a very productive meeting," agreed Republican Senator Bob Bennett, a senior member of the committee.
"The most encouraging thing that comes out of this, from my point of view, is that I now expect we will, indeed have a plan that can pass the House, pass the Senate, be signed by the president," he added.
US President George W Bush, whose administration put forward the deal, was to meet later on Thursday with White House rivals Democrat Barack Obama and Republican John McCain and other US lawmakers to address the financial crisis.
White House agrees to key principles
House Speaker Nancy Pelosi told reporters earlier the White House had agreed to key principles demanded by Democrats to be included in the bailout bill, including "forbearance, oversight, equity, and executive pay."
The four issues have been sticking points in efforts to hammer out a deal, with Democrats insisting that any bailout include "forbearance" or leniency in the terms of repayment for mortgage holders.
Democrats also have said that the government and public are entitled to "equity" in the company, entitling them to a share of any profits generated.
They also are calling for limits on deals for company executives, whose compensation packages often total many millions of dollars. And they said that any deal must include strict oversight by federal regulators.
"We couldn't bring a bill without those provisions. There are other provisions that we haven't reached. It's not that it's disagreement, it's just what form will it take in the legislation," Pelosi stressed.
The White House meanwhile praised "significant progress" in difficult talks with lawmakers on the rescue package.
"We're reaching a consensus and we're going to try to drive that to a conclusion today," spokeswoman Dana Perino told reporters hours before the unprecedented crisis talks at the White House expected at 1800 GMT.
Optimistic Wall Street stocks
Wall Street stocks raced higher on Thursday, boosted by optimism that Congress was nearing a deal on a massive rescue plan for the troubled financial sector.
Traders focused on the news from Washington, largely brushing off weak data on manufactured durable goods orders and a profit warning from General Electric.
After a mixed session on Wednesday for the market, the Dow Jones Industrial Average climbed 185.90 points (1.72 percent) to 11,011.07 and the Nasdaq composite added 31.12 points (1.44 percent) to 2,186.80 at 1510 GMT.
Also in New York, McCain voiced confidence a deal on a Wall Street bailout could be sealed before markets open on Monday, saying his 'old navy pilot' instincts told him to suspend his White House bid amid the crisis.
The Republican presidential candidate said he could not stay on the campaign trail as normal while the future of the US economy was at stake, before heading back to Washington for the White House summit.
Aides to Obama, in Clearwater, Florida, meanwhile cast doubt on McCain's motives for suspending his campaign when a financial crisis deal appeared to be near.
"All of a sudden, now that we're on the verge of making a deal, John McCain drops himself in to make a deal," Democrat Barney Frank, the House financial services leader, told ABC television.
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"We've reached a fundamental agreement on a set of principles," US Senator Christopher Dodd told reporters in Congress, joined by other leaders after discussions on the $700 billion package demanded by the US government.
After nearly three hours of talks among Democratic and Republican leaders, Dodd, the Senate's banking committee chairman, said both sides would now submit their outline agreement to the Treasury and party colleagues.
The principles give Treasury Secretary Henry Paulson "the authority and funding he needs to act," Dodd said.
"We've also dealt effectively, I think, with the issue of effective oversight, with home ownership preservation, as well as executive compensation."
"It was a very productive meeting," agreed Republican Senator Bob Bennett, a senior member of the committee.
"The most encouraging thing that comes out of this, from my point of view, is that I now expect we will, indeed have a plan that can pass the House, pass the Senate, be signed by the president," he added.
US President George W Bush, whose administration put forward the deal, was to meet later on Thursday with White House rivals Democrat Barack Obama and Republican John McCain and other US lawmakers to address the financial crisis.
White House agrees to key principles
House Speaker Nancy Pelosi told reporters earlier the White House had agreed to key principles demanded by Democrats to be included in the bailout bill, including "forbearance, oversight, equity, and executive pay."
The four issues have been sticking points in efforts to hammer out a deal, with Democrats insisting that any bailout include "forbearance" or leniency in the terms of repayment for mortgage holders.
Democrats also have said that the government and public are entitled to "equity" in the company, entitling them to a share of any profits generated.
They also are calling for limits on deals for company executives, whose compensation packages often total many millions of dollars. And they said that any deal must include strict oversight by federal regulators.
"We couldn't bring a bill without those provisions. There are other provisions that we haven't reached. It's not that it's disagreement, it's just what form will it take in the legislation," Pelosi stressed.
The White House meanwhile praised "significant progress" in difficult talks with lawmakers on the rescue package.
"We're reaching a consensus and we're going to try to drive that to a conclusion today," spokeswoman Dana Perino told reporters hours before the unprecedented crisis talks at the White House expected at 1800 GMT.
Optimistic Wall Street stocks
Wall Street stocks raced higher on Thursday, boosted by optimism that Congress was nearing a deal on a massive rescue plan for the troubled financial sector.
Traders focused on the news from Washington, largely brushing off weak data on manufactured durable goods orders and a profit warning from General Electric.
After a mixed session on Wednesday for the market, the Dow Jones Industrial Average climbed 185.90 points (1.72 percent) to 11,011.07 and the Nasdaq composite added 31.12 points (1.44 percent) to 2,186.80 at 1510 GMT.
Also in New York, McCain voiced confidence a deal on a Wall Street bailout could be sealed before markets open on Monday, saying his 'old navy pilot' instincts told him to suspend his White House bid amid the crisis.
The Republican presidential candidate said he could not stay on the campaign trail as normal while the future of the US economy was at stake, before heading back to Washington for the White House summit.
Aides to Obama, in Clearwater, Florida, meanwhile cast doubt on McCain's motives for suspending his campaign when a financial crisis deal appeared to be near.
"All of a sudden, now that we're on the verge of making a deal, John McCain drops himself in to make a deal," Democrat Barney Frank, the House financial services leader, told ABC television.
Also Read:
Bush summons Obama, McCain for crisis economy talks
Bush warns economy in 'danger'
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