Congressional Leaders Seek Support for $700 Billion Bank Rescue
By Alison Vekshin and Laura Litvan
Sept. 28 (Bloomberg) -- Senate Majority Leader Harry Reid said a $700 billion bank-rescue package will be voted on early this week and ``now we have to have the votes.''
The House may vote tomorrow, House Speaker Nancy Pelosi said. The Senate will consider it at least by Oct. 1, Reid said.
The comments came during a weekend of talks aimed at reaching agreement before global financial markets reopen today. It would give Treasury Secretary Henry Paulson an immediate $250 billion to buy bad loans from financial companies, with the rest to be doled out in stages.
Lawmakers steered a path between voter anger at having to foot the bill for the mistakes of Wall Street bankers and the need to shore up a financial system shaken by the collapse of Lehman Brothers Holdings Inc. and Washington Mutual Inc. President George W. Bush, in a speech yesterday, said the package was needed to prevent a ``deep and painful recession.''
The agreement alters the Bush administration's original request for unchecked authority to purchase distressed debt securities from financial companies reeling from the record number of home foreclosures.
To contact the reporters on this story: James Rowley in Washington at jarowley@bloomberg.netAlison Vekshin in Washington at avekshin@bloomberg.net
Last Updated: September 28, 2008 17:55 EDT
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