Spring Break
Bailout revival sought; better deposit safety seen
The Associated Press
Issue date: 10/1/08 Section: News
WASHINGTON - Congressional leaders, President Bush and the two rivals to succeed him rummaged through ideas new and old Tuesday, desperately seeking to change a dozen House members' votes and pass a multibillion-dollar economic rescue plan. At the top of the list: Raise confidence in the banking system by increasing the government's insurance.
In addition, there was talk of making it easier for financial institutions to hold questionable long-term assets, an idea embraced by some of the House Republicans who slapped down the bailout bill and sent stocks tumbling on Monday.
Wall Street regained hope on Tuesday, and the Dow Jones industrials rose 485 points, making up a good bit of the ground lost in the 778-point plunge.
Congressional leaders hope the changes under discussion - or a few others that could be in the mix - will be enough to persuade as few as six House Republicans and six Democrats to undo Monday's stunning vote that rejected a proposed $700 billion rescue.
With the Capitol largely quiet because of the Jewish new year, no overall plan appeared to jell just yet.
Some lawmakers suggested the Senate might approve its own version on Wednesday, presumably with a few changes to the failed House bill, and then give the House a new crack at the legislation before the week is out.
Still, the House is where the problems are, and leaders there were scrounging for ideas that might appeal to a few of the 133 Republicans and 95 Democrats who rejected the proposal on Monday.
Senate Banking Committee Chairman Christopher Dodd, D-Conn., told reporters, "I'm told a number of people who voted 'no' yesterday are having serious second thoughts about it."
He added, however, "There's no game plan that's been decided."
Senate Republican Leader Mitch McConnell of Kentucky said it was time for all lawmakers to "act like grown-ups, if you will, and get this done for all of the people." He predicted a bill would pass this week, although the House, not the Senate, is the focus of the dispute.
In addition, there was talk of making it easier for financial institutions to hold questionable long-term assets, an idea embraced by some of the House Republicans who slapped down the bailout bill and sent stocks tumbling on Monday.
Wall Street regained hope on Tuesday, and the Dow Jones industrials rose 485 points, making up a good bit of the ground lost in the 778-point plunge.
Congressional leaders hope the changes under discussion - or a few others that could be in the mix - will be enough to persuade as few as six House Republicans and six Democrats to undo Monday's stunning vote that rejected a proposed $700 billion rescue.
With the Capitol largely quiet because of the Jewish new year, no overall plan appeared to jell just yet.
Some lawmakers suggested the Senate might approve its own version on Wednesday, presumably with a few changes to the failed House bill, and then give the House a new crack at the legislation before the week is out.
Still, the House is where the problems are, and leaders there were scrounging for ideas that might appeal to a few of the 133 Republicans and 95 Democrats who rejected the proposal on Monday.
Senate Banking Committee Chairman Christopher Dodd, D-Conn., told reporters, "I'm told a number of people who voted 'no' yesterday are having serious second thoughts about it."
He added, however, "There's no game plan that's been decided."
Senate Republican Leader Mitch McConnell of Kentucky said it was time for all lawmakers to "act like grown-ups, if you will, and get this done for all of the people." He predicted a bill would pass this week, although the House, not the Senate, is the focus of the dispute.
Be the first to comment on this story