House will vote on market bailout

House will vote on market bailout

The House is slated to vote today on what leaders say is an unpopular $700 billion rescue plan for beleaguered financial companies as President Bush and congressional leaders are scrambling to lock in enough votes to pass the measure.

"Without this rescue plan, the costs to the American economy could be disastrous," Bush said in a written statement Sunday.

President George W. Bush speaks during a meeting with Bicameral and Bipartisan members of Congress Thursday, Sept. 25, 2008, in the Cabinet Room of the White House. Included in the meeting with the President are, from left: Sen. John McCain, R-Ariz., House Minority Leader John Boehner, R-Ohio, House Speaker Nancy Pelosi, D-Calif.; Senate Majority Leader Harry Reid, D-Nev.; Senate Minority Leader Mitch McConnell, R-Ky., and Sen. Barack Obama, D-Ill. White House photo by David Bohrer

With elections coming up shortly, most officials don’t want to be tied to the plan after thousands of calls, e-mails, and letters from constituents angry about the proposed bailout. Officials in both parties expected the vote to be a nail-biter.

Presidential candidates, John McCain and Barack Obama have expressed only lukewarm support for the bailout.

Lawmakers have demanded curbs on the pay packages of top executives whose firms get the help, and assurances that taxpayers would ultimately be reimbursed by the companies for any losses. The legislation also requires that the government take ownership stakes in companies that receive federal infusions, so it could share a piece of potential future profits.

Banks, credit unions, securities brokers and dealers, and insurance companies, among others, could get the help as long as they had "significant operations" in the United States. Originally designed to help companies get rotten mortgage-related investments off their balance sheets, the legislation allows the government to buy up any kind of asset top economic officials think is necessary to promote market stability.

The final 110-page bill was released Sunday evening after a final weekend of intense negotiating.

Information from Associated Press was used in this report