Lawmakers report deal on bailout, White House cautious
Associated Press - September 25, 2008 2:13 PM ET
WASHINGTON (AP) - Lawmakers on Capitol Hill say they've worked out a bipartisan compromise on a bailout of the financial industry. The White House is reacting cautiously.
Leaders are describing it as an agreement in principle on the general direction of the bailout bill.
The Bush administration has agreed to a limit on pay for executives of bailed-out financial institutions. Lawmakers have also been pushing to phase in the $700-billion cost and allow the government to take an ownership stake in troubled companies rather than just buying their bad debt.
House Financial Services Committee Chairman Barney Frank says "there really isn't much of a deadlock."
The White House is calling the agreement "a good sign." Still, deputy press secretary Tony Fratto says the president will want to hear from Treasury Secretary Henry Paulson and "take a look at the details."
The White House has planned a meeting for this afternoon with congressional leaders and presidential candidates Barack Obama and John McCain.
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