Lawmakers Reach Accord On Huge Financial Rescue

"Many of these assets still have significant underlying value, because the vast majority of people will eventually pay off their mortgages," President Bush said yesterday in his weekly radio address. "In other words, many of the assets the government would buy are likely to go up in price over time. This means that the government will be able to recoup much, if not all, of the original expenditure."

Bush attempted to address criticisms from the right and left that the plan would bail out irresponsible financiers while doing nothing for regular Americans. Echoing frequent comments by him and his aides, Bush said allowing Wall Street to collapse further would pose greater dangers to the economy, perhaps triggering a "deep and painful recession."

"The rescue effort we're negotiating is not aimed at Wall Street -- it is aimed at your street," Bush said. "And there is now widespread agreement on the major principles. We must free up the flow of credit to consumers and businesses by reducing the risk posed by troubled assets."

On Capitol Hill, Democrats, too, tried to play down the $700 billion figure. "Nobody believes that's going to be the final cost," House Majority Leader Steny Hoyer (D-Md.) told reporters.

Democratic leaders have emphasized to rank-and-file members that Paulson has told them that he could only spend about $50 billion a month on the securities purchase program. Meanwhile, they are pressing to release the money in segments -- $250 billion immediately, $100 billion later and the final $350 billion only after Congress is given a chance to object -- a move that they say will allow Congress to closely oversee how the money is spent.

All parties to the talks had agreed on at least one point early yesterday: The need for an oversight board to ensure the program is run properly. The final details of the board remained unclear last night, and most lawmakers said it was too early to know who is likely to run it.

Hoyer said that whoever oversees the bailout program must instill "confidence" in the public and must not have any conflicts of interest with the financial markets or the Treasury.

After a break for dinner, the sides scattered into at least three separate groupings -- Paulson huddled in House Minority Leader John A. Boehner's office with other GOP leaders, Democrats in Pelosi's conference room and Pelosi in a separate suite talking with other Democrats.

Rep. Rahm Emanuel (D-Ill.) and Pelosi's chief of staff spent a couple of hours in shuttle diplomacy, frantically walking from room to room carrying sheets of paper. Conrad, the chairman of the Senate Budget Committee, said the negotiators were "shopping language" of the bill's draft versions. He and Rep. Barney Frank (D-Mass.), chairman of the House Financial Services Committee, also spent time in Boehner's office with Paulson.

By 11 p.m., the three groups had once again converged in Pelosi's office to strike a final deal.

Pelosi said she hoped to publish the legislation on the Internet for almost an entire day before voting, meaning a vote could come tonight or tomorrow morning.

"I would hope that the progress that we make today could bring us to that point," she told reporters early yesterday evening.

Staff writer Dan Eggen contributed to this report.