Sept. 25 (Bloomberg) -- Congressional negotiators said they reached a bipartisan agreement on a ``set of principles'' for a $700 billion financial-rescue package to inject fresh capital into the paralyzed credit markets. Lawmakers agreed that legislation should include provisions on oversight of the Treasury-run program, limits on executive pay and a section on homeownership preservation, Senate Banking Committee Chairman Christopher Dodd said. Still unresolved is whether the bill will include a provision allowing bankruptcy judges to change mortgage terms. The Treasury would have $250 billion available immediately, said a Senate aide, who requested anonymity. ``We believe that we're prepared to act expeditiously on a package'' that will ``send a message to the markets,'' Dodd said after emerging from a negotiating session. The agreement must still be passed by the House and Senate, and signed into law by the president. House Financial Services Committee Chairman Barney Frank said it wasn't clear how many House Republicans would support the measure. Senator Robert Bennett, a Utah Republican, predicted it would pass both chambers. Approval of a measure would address what President George W. Bush warned was a crisis that could cause widespread economic turmoil. In an address to the nation last night Bush said that ``without immediate action by Congress, America could slip into a financial panic, and a distressing scenario would unfold.'' Bill By Day's End Bennett said lawmakers would have legislative language by the end of the day. ``I now expect we will indeed have a plan that can pass the House, pass the Senate, be signed by the president and bring a sense of certainty to this crisis that is still roiling in the markets,'' Bennett said. ``That is our primary responsibility and I think we are now prepared to meet it.'' Bush will meet this afternoon with congressional leaders as well as Republican presidential candidate John McCain and his Democratic rival, Barack Obama on the rescue plan. In addition to the first $250 billion allocated to Treasury, another $100 billion would also be available for the bailout program, the Senate aide said. The remaining $350 billion could be used unless Congress prohibits it, the aide said. Frank said a Democratic provision to let judges rewrite mortgage terms for homeowners in bankruptcy proceedings is the ``most controversial'' and remains an ``outstanding issue.'' ``We pushed very strongly for it,'' Frank said. ``We haven't resolved it yet.'' ``Bankruptcy is the one issue where our Republican colleagues told us they thought that would blow up the whole thing,'' Frank told reporters. ``So it hasn't been finally resolved, but that's on the table.'' Spencer Bachus, the top Republican on the House Financial Services Committee, said he was urged to ``see that the taxpayer and that the Treasury is reimbursed for their expenditures. I think that was an important step that we all took and we're committed to the taxpayer being protected.'' To contact the reporters on this story: James Rowley in Washington, at Jrowley@bloomberg.net; Last Updated: September 25, 2008 14:20 EDT
That story has been hanging out there all day. Is that really what caused a 2 minute spike followed by a correction? Just doesn't seem likely.
The story has but I believe there was a press conference or statement at 1pm saying they had agreed 'in principle', there's another one due out of the White House imminently apparently.....
I doubt there will be a deal before next week. Conservative republicans are hesitant to accept the deal as it stands. Also, the record voter outrage at the bailout makes the representatives quiver in their pants... And I think we will see 1.48 again on the EURUSD this week.