Obama, Capitol Hill Leaders Speak as One on Crisis

One Clinton Treasury official, speaking on the condition of anonymity, said the Long-Term Capital Management collapse was like a single Hiroshima-size atomic bomb compared with multiple, independently targeted nuclear warheads now headed for Wall Street.

But the team is not without its own disagreements. On Monday night's conference call, Rubin warned Democrats not to load too many policy prescriptions or extra economic stimulus onto the rescue bill, saying such efforts could not be allowed to slow a package that is urgently needed. Summers, once Rubin's deputy at Treasury, disagreed, saying Democrats had the time and the authority to demand a larger role in shaping the bailout.

Levitt, who in 1999 was a lonely voice warning against the bipartisan deregulation of the banking, insurance and investment banking industries, sided with more liberal economists in saying any money should be released in small increments, with progress reviews set before the next release.

Both Obama and McCain laid out their demands for the bailout legislation yesterday but broke little new ground. Obama asked for a ban on generous payouts for "irresponsible CEOs on Wall Street"; the replacement of Treasury Secretary Henry M. Paulson Jr.'s absolute authority over the bailout's execution with that of a bipartisan, independent board; an investor stake for taxpayers, probably in the form of equity from participating companies; and assistance for people who are in danger of foreclosure.

McCain's demands echoed Obama's: transparency in the creation and execution of the bailout legislation, a bipartisan oversight board and executive compensation caps. He also added a strict prohibition on lawmaker pet projects in the final bill.

Staff writers Shailagh Murray and Robert Barnes contributed to this report.