国际英语新闻：U.S. lawmakers reach deal on $700 bln bailout package

WASHINGTON, Sept. 28 (Xinhua) -- U.S. lawmakers agreed on details of the Bush Administration's 700 billion dollar bailout bill on Sunday, authorizing the U.S. government the largest financial intervention since the Great Depression but awaiting the Congress approval.

    Under the plan, the government could get 250 billion dollars immediately, 100 billion dollars more if the president certified it was necessary, and the last 350 billion dollars with a separate certification and subject to a congressional resolution of disapproval.

    It would allow the government to purchase troubled assets from pension plans, local governments, and small banks that serve low- and middle-income families.

US House Minority Leader John Boehner (R-OH) (C) talks with reporters about progress with congressional negotiators working on a bailout package for the current financial and banking crisis, at the US Capitol in Washington, September 27, 2008.

    It would give taxpayers an ownership stake and profit-making opportunities with participating companies, limit the compensation payments for company bosses and allow the government to help prevent home foreclosures.

    The legislation would institute new executive compensation requirements for participating companies, including "no multi-million dollar golden parachutes," limits on compensation generally, and the ability to recover "bonuses paid based on promised gains that later turn out to be false or inaccurate."

    Some lawmakers had set a deadline for passing the bill by the time the Asian markets open Sunday evening. But Senator Gregg said the Congress might approve it in the next two days.

    "I hope the House could vote tomorrow (Monday) and the Senate should vote tomorrow," he said.

    Treasury Secretary Henry Paulson, an advocate of the bailout package, presented the original plan more than a week ago, which foresees use of tax dollars to buy up bad debt from financial institutions staggered by the sub-prime mortgage crisis.

    However, the plan was rejected by some Republicans who wanted an alternative plan under which the government would provide insurance to companies that agree to hold frozen assets.

Demonstrators protest the U.S. Congress' proposed $700 billion bailout of the financial industry in New York's Times Square September 27, 2008. The U.S. Congress embarked on a weekend mission to strike a deal on a proposed $700 billion bailout of the financial industry before stock markets open on Monday in an attempt to end the greatest financial crisis since the Great Depression

Earlier Sunday, congressional leaders announced a tentative deal on the bailout plan after marathon talks.

    "We have to get it committed to paper so we can formally agree," said House of Representatives Speaker Nancy Pelosi.

    White House spokesman Tony Fratto said earlier Sunday that President George W. Bush spoke with Speaker Pelosi earlier Saturday and the White House were "very pleased with the progress" made at the talks.

    "We're very pleased with the progress tonight and appreciate the extraordinary bipartisan efforts being made to stabilize our financial markets and protect our economy," Fratto said.

    Two White House hopeful, Republican Senator John McCain and Democratic Senator Barack Obama also welcomed the positive result, noting the plan was vital to rescue the troubled American economy.

    "This is something that all of us will swallow hard and go forward with," said McCain, adding "The option of doing nothing is simply not an acceptable option."

    Obama said he worked hard to get the agreement done in the Capital. "I was pushing very hard and involved in shaping those provisions," he said.

    Analysts believe the deal on the rescue package would lend Wall Street stocks some support this week, but it was not a save all for equity markets.

    "I would view any rallies as being transitory because now the real work begins," said Jim Awad, chairman of W.P. Stewart & Co Ltd in New York.

    "I would describe the plan as necessary but not in and of itself sufficient. Between now and normality you will have more equity destruction and pain," he warned.

    Bruce Kasman, chief economist at JP Morgan in New York, predicted that the American economy will slip into recession in the fall, with a 0.5 percent annual rate of decline in both the fourth and first quarters.

    "Our forecast of an economy that would skirt contraction depended on a business sector that did not turn to more aggressive cutbacks in hiring or capital spending," he said.

    "A resolution of the financial crisis won't solve all of the economy's problems. However, no resolution is very likely to make matters worse," said a report by The Wall Street Journal.