A bill is likely to be bought to the House floor on Monday on the proposed $700bn bailout of the financial markets by the US Federal Reserve. Congressional leaders and the Bush administration have reached a tentative agreement.
Staff members from Congress are working through the night to finalize the details and language of the bill. Headline items that have become attached are executive pay limits for executives whose firms seek aid and help to prevent home foreclosures by the government as owner of the distressed mortgage-backed securities.
Firms may have to surrender an equity stake to the government, so the taxpayer can profit if it actually works in the years ahead.
A Congressional panel is to have strict oversight of the deal. Firms hired by the US Treasury are to abide by conflict of interest rules. The White House conceded these restrictions on its requested unfettered authority to run the bailout programme. Democrats for their part removed a demand for judges to be allowed to amend first mortgages. A fee on securities transactions, essentially a tax, to pay for the rescue was also dropped.
“All of this was done in a way to insulate Main Street and everyday Americans from the crisis on Wall Street,” Nancy. Pelosi said at the news conference. “We have to commit it to paper so we can formally agree, but I want to congratulate all of the negotiators for the great work they have done.”
In a statement, Tony Fratto, the deputy White House press secretary, said: “We’re pleased with the progress tonight and appreciate the bipartisan effort to stabilize our financial markets and protect our economy.”
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