President Bush's $700B Bailout Bill Remains Stalled on the Hill
Thursday, September 25, 2008SUSIE GHARIB: Still no deal tonight on that $700 billion financial rescue plan, despite an historic meeting at the White House. President Bush spent the afternoon with both presidential candidates and leading members of Congress, trying to reach a quick agreement to bail out the struggling financial sector. On Wall Street, the Dow rallied nearly 200 points on early reports that a bailout agreement had been reached. Joining me now from Washington with the latest on the negotiations, our Stephanie Dhue. Stephanie, where do things stand right now?
STEPHANIE DHUE, NIGHTLY BUSINESS REPORT CORRESPONDENT: Susie, at this hour, we're still in a holding pattern. The meeting at the White House has broken up. Now there are meetings going on back at the capital. Today's White House summit was part substance, part politics. Candidates John McCain and Barack Obama were at opposite ends of the table with President George Bush and congressional leaders in between. The president urged quick action on a plan to address the economic crisis.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: All of us around the table take this issue very seriously, and we know we've got to get something done as quickly as possible. And this meeting is an attempt to move the process forward.
DHUE: Earlier in the day a bipartisan group of key House and Senate lawmakers announced an agreement in principle of the outlines of a plan. Senator Chris Dodd summed it up for Wall Street this way.
SEN. CHRIS DODD (D-CT), CHAIRMAN, BANKING COMMITTEE: We believe that we are prepared to act expeditiously on a package to our colleagues that will allow us to send a message to the markets, that the Congress heard the message and we want to do what is correct and right in the next few days, we can't say exactly when.
DHUE: The $700 billion plan would be done in installments, with the first at $250 billion. Treasury would have the authority to purchase troubled assets, but it would have to answer to an oversight board. The government would get warrants from the companies that unload troubled assets. Executive compensation would be limited for companies taking part in the program and the plan would also include measures to reduce foreclosures. But after this afternoon's White House meeting, Senator Richard Shelby, the ranking Republican on the Banking Committee, said there is no deal.
SEN. RICHARD SHELBY (R-AL), RANKING MEMBER, BANKING COMMITTEE: I can tell you I don't believe we have an agreement. I've voiced my concerns all along.
DHUE: Instead, he wants lawmakers to consider an alternative to give the Fed and Treasury more money to add liquidity to the market. There is also vocal opposition from people who have sub-prime loans. CROWD: Stop the bailout! What about us! Stop the bailout! DHUE: The Neighborhood Assistance Corporation of America is protesting the deal. Bruce Marks leads the activist group.
BRUCE MARKS, NEIGHBORHOOD ASSISTANCE CORPORATION OF AMERICA: The American people know it's a bad bill across the board. It should be stopped, because the American taxpayer doesn't want to foot the bill for these Wall Street predators who have made millions of dollars.
DHUE: While no one really likes this bill, the political consensus is that doing nothing is really not an option, Susie?
GHARIB: So, Stephanie, what happens next?
DHUE: Well, they actually have to have the legislative language and they have to build support around that.
GHARIB: Well, what are the sticking points to get to that point?
DHUE: Well, some are substance like the bankruptcy bill that people have wanted to include should they change the bankruptcy law so these loans can be worked out in bankruptcy court, and some is politics. No one wants to take ownership of this bailout. But then again, no one wants the alternative either.
GHARIB: Well, as you said earlier, one way or another they are going to come up with a bill. What is the timetable on this, in the next 24 hour does you think that we are going to have an agreement on both sides?
DHUE: Well, I think 24 hours might be a little bit ambitious. Congress was supposed to recess yesterday. Now it looks like they will be here through the weekend. But I do think that we will have something in a matter of days, not weeks.
GHARIB: All right. Thanks a lot, Stephanie.
DHUE: Thank you.
GHARIB: We've been talking with NBR Washington correspondent Stephanie Dhue.
