Obama gives GOP an opening

Sen. Barack Obama (D-Ill.) has given House Republicans an opening to help shape the $700 billion Wall Street bailout more to their liking, and the GOP members appear to be taking it.

During a conference call with reporters, the Democratic presidential candidate said an alternative plan put forth by House Republicans should be added to the one negotiated among a bipartisan group of senators, House Democrats and Treasury Secretary Henry Paulson.

{mosads}“One of the things that I suggested yesterday was … to see if — to — you know, have Secretary Paulson figure out whether those items should be listed in a menu of options that are available to him for the rescue package,” Obama said.

Obama’s comments may have melted some of the intransigence that has paralyzed any movement on the deal.

House Republicans announced they would send Minority Whip Roy Blunt (R-Mo.) to the negotiating table. Rep. Paul Ryan (R-Wis.), one of the authors of the GOP plan, expressed optimism that the parties could reach some agreement.

“We’re not a stick in the mud, we’re not drawing a line in the sand, but we want something that works,” said Ryan, one of three lawmakers leading a House Republican working group charged by leadership with coming up with a new plan.

House Financial Services Committee Chairman Barney Frank (D-Mass.) said he did not believe that Blunt was being sent to say that only the House Republicans’ new plan, announced Thursday, was acceptable.

"There would be no point in negotiating if he was wedded to that," Frank said of Blunt.

But Frank did say the GOP bill could be merged with the other work product. He said Paulson said the House Republicans’ insurance-based plan could be added to the Bush administration’s plan to purchase toxic debt from financial institutions.

Frank called the House Republican plan “useless, but not harmful.”

Asked about adding his plan to the Bush plan, Ryan said, “We’re not going to negotiate in the press.”