Congress nearing bailout deal

Congressional Democrats and Republicans on key committees are nearing agreement on a Wall Street bailout package and will sit down Thursday morning to craft a final bipartisan plan, according to a Democratic source. 

The aide said that “not too many” issues remain unresolved for the 10 a.m. meeting.

{mosads} That word came as President Bush wrapped up his address to the nation and as Sen. John McCain (R-Ariz.) the Republican presidential candidate was suspending his campaign to return to Washington and deal with the financial crisis.

But Republicans said the idea that a deal could be reached Thursday morning was overly optimistic.

“There will not be a final deal as a result of the 10 a.m. meeting tomorrow,” said Michael Steel, spokesman for House Minority Leader John Boehner (R-Ohio). “We have made some progress but are not nearly at that point.”

Shortly before Bush’s speech, Senate Democrats emerged from a meeting with Treasury Secretary Henry Paulson and reported a conceptual deal they hoped could receive a vote before markets open on Monday.

Majority Whip Dick Durbin (D-Ill.) said a bill could be produced as early as Thursday, with debate and a vote likely over the weekend.

Paulson and the Bush administration have sought a $700 billion bailout to buy “toxic” debt poisoning financial institutions causing lending to freeze up.

Many Republicans, particularly conservatives, are fighting the plan as anathema to free market principles. Some Democrats have resisted the plan as well, but many are working to add measures to help homeowners facing foreclosure, or limit the amount of money put up by the government.

The administration already dropped its resistance to demands to limit executive pay at bailed out companies.

Though Democrats are showing less resistance, House Speaker Nancy Pelosi (D-Calif.) has said the bill won’t go through unless it has Republican support.

House Financial Services Chairman Barney Frank (D-Mass.) said Wednesday he expects that would mean a majority of both Republicans and Democrats in each chamber.