Final rescue plan expected Sunday
Deal to provide $250billion upfront
elosi cites 'significant bipartisan work'
By Ruth Mantell,MarketWatch
Last update:10:28a.m.EDT Sept.28,2008Comments:4WASHINGTON (MarketWatch)--U.S.officials expect to announce a final agreement Sunday on the massive rescue plan for the country's financial system,with House Speaker Nancy Pelosi's office saying "significant bipartisan work has built consensus."
White House spokesman Tony Fratto said the Bush administration and members of Congress will want to see the legislative language Sunday morning once staff completes drafting the agreement.
"We're very pleased with the agreement,"Fratto said."It has taken an extraordinary bipartisan effort."
Fratto said Bush had made a calls Saturday to Republican leaders working on the plan and spoke with Pelosi in the evening.
A draft proposal from Pelosi's office indicates that the agreement won't initially provide the $700billion requested earlier by the Treasury Department,but requires review from lawmakers for future payments.The agreement would authorize $250billion upon date of enactment,with another $100billion upon presidential certification of need,according to a Pelosi aide.The other $350billion would be subject to congressional review.
"If the government loses money,the financial industry will pay back the taxpayers,"the draft proposal says.
The government,as the owner of mortgages and mortgage-backed securities,will work to facilitate loan modifications,aiming to curb foreclosures.
The agreement will also limit compensation for executives at participating companies,and provide for oversight for the plan.
Ruth Mantell is a MarketWatch reporter based in Washington.