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Deal likely on U.S. bailout plan

WASHINGTON: President George W. Bush is bringing presidential candidates Barack Obama and John McCain into negotiations on a $700 billion rescue of Wall Street as Democrats and Republicans near agreement on a bailout plan with more protections for U.S. taxpayers.

Senior lawmakers and Bush administration officials have cleared away key obstacles to a deal on the unprecedented rescue, agreeing to include widely supported limits on pay packages for executives whose companies benefit.

They are still wrangling over major elements, including how to phase in the eye-popping cost — a measure demanded by Democrats and some Republicans who want stronger congressional control over the bailout — without spooking markets.

A plan to let the government take an ownership stake in troubled companies as part of the rescue, rather than just buying bad debt, also was under intense negotiation.

A bipartisan meeting was set for later on Thursday to begin drafting a compromise, which top Democrats said they hoped could pass within days.

The core of the plan envisions the government buying up sour assets of shaky financial firms to keep them from going under and to stave off a potentially severe recession.

Mr. Bush acknowledged in a major television address on Wednesday that the bailout would be a “tough vote” for lawmakers.

But he said failing to approve it would risk dire consequences for the economy and most Americans.

“Without immediate action by Congress, America could slip into a financial panic, and a distressing scenario would unfold,” he said as he worked to resurrect the unpopular bailout package. “Our entire economy is in danger.” — AP

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