Bailout Negotiations Move Forward
Four Principal Lawmakers Set to Meet Until Deal Is ReachedBy COREY BOLES and MICHAEL R. CRITTENDENArticle
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more in Politics & Campaign »WASHINGTON -- Key House and Senate negotiators were scheduled to meet Saturday afternoon to iron out the final details of a $700 billion rescue package for Wall Street, with a goal of being able to announce a final agreement before Asian markets open Monday morning.
Associated Press
Senate Republican Leader Mitch McConnell and Sen. Judd Gregg speak on the financial crisis Saturday.
Senate Majority Leader Harry Reid (D. Nev.) in an appearance on the Senate floor, said there are only a "handful of issues still lingering" for lawmakers to finalize. He said he hopes Congress and the Bush administration can at the very least release an outline of the bailout plan by Sunday evening to send a reassuring message to global stock markets.
Still, there were signs that lawmakers and the Treasury Department remain divided on how the $700 billion authority to buy up toxic assets will be meted out. Lawmakers want Treasury to receive the authority in tranches, receiving $250 billion immediately and another $100 billion if needed as certified by the president. The remaining $350 billion would be subject to a congressional vote, giving lawmakers the opportunity to vote to rescind the funds.
But a Senate aide familiar with the discussions said Treasury is pushing for a larger initial authority, likely around $500 billion.
Congressional and Treasury staff members tried to resolve the issue in talks Friday that extended into the wee hours of Saturday morning to no avail.
The issue is one of the handful the four key negotiators from the House and Senate are expected to discuss at a meeting beginning at 3 p.m. EDT.
The bailout negotiations took a step forward Friday, when Senate Democrats have agreed to include an insurance-based scheme as an option as part of the Wall Street bailout package in