According to reports from WSJ, the U.S. Congress and the Bush administration, in an urgent weekend negotiating session that broke early this morning at 3:00 a.m., have closed in on a new compromise on the controversial $700 billion bailout rescue plan, aimed at stabilizing U.S. financial markets.
The talks, which involved staffers from Congress, the Treasury Department and the White House, are expected to continue – since the exact status of the legislation, and the next steps remain still unclear ; suggesting the compromise isn’t final yet, and details could change. However, based on the latest indications, notes the Journal – it appears that the plan’s crucial elements, as originally introduced by the Treasury Department on Sept. 18, remain intact.
President Bush said Saturday morning he was confident the legislation being negotiated will pass “very soon”, and that there was “widespread agreement on the plan’s major principles” to kick-start the credit markets. The president also stressed the urgency of reaching an agreement on the plan, saying “our entire economy is in danger.”
The core of the rescue legislation being hammered out is Treasury’s plan to buy as much as $700 billion in troubled mortgage assets which are currently burdening many financial institutions and stopping banks from lending. At what price these toxic assets will be acquired by the Treasury and how saleable they will prove, is something that remains to be seen. For the time being however, we need a deal to take place because it’s obvious, one must.
Congressional leaders are planning for possible votes Sunday.