Bailout plan hits snags Thursday evening

Bailout plan hits snags Thursday evening

POSTED 09/26/2008 - Negotiations over the proposed $700 billion bailout of the financial system ended in one official called "chaos" Thursday as lawmakers bickered continuously about each proposal meetings between key lawmakers broke down without any progress.

Senate Banking Committee Chairman Christopher Dodd, D-Conn

Instead of coming to an agreement, the session ran almost along party lines as Democrats and Republicans each blamed the other for no cooperation. House Republicans in particular expressed concerns about whether the package included enough protection for taxpayers.

Earlier Thursday, congressional negotiators said they had agreed to revisions to the rescue plan, which calls for the Treasury Department to buy up bad mortgage securities from banks in an effort to get them to lend again.

"We've reached a fundamental agreement on a set of principles, one, for taxpayers, which is tremendously important," said Senate Banking Committee Chairman Christopher Dodd, D-Conn. "We're very confident we can act expeditiously."

But according to the Associated Press, conservatives were in revolt over the astonishing price tag of the proposal and the hand of government that it would place on private markets.

So negotiators ended the night without a deal.

It is expected that lawmakers will not recess Friday, but will instead work through the weekend if they can not reach a deal today.