Bailout talks fail to reach compromise: Reports

Washington, Sep 26 (PTI) The high-level meeting of the
probables for the post of U.S. President with George Bush
failed to reach a compromise on the U.S.D. 700-billion bailout
package with Republicans denouncing the strategy as
ill-conceived and Democrats accusing the other party of
non-cooperation.

"In a roller-coaster day of hopes raised and hopes
dashed, efforts to negotiate a compromise on the U.S.D.
700-billion plan for rescuing the nation's financial system
got bogged down on Thursday," reported Los Angeles Times.

According to media reports, it was unclear whether the
breakdown marked the beginning of the end for the rescue
effort, or merely a tumultuous interlude on the way to
approving a federal bailout that many in Congress consider
unpalatable but unavoidable.

The meeting was called by President Bush to discuss the
plan to bailout financial system with Democrat Presidential
candidate Barack Obama and his Republican counterpart John
McCain.

The report further stated that there were signs that,
behind the scenes, sceptical Democrats and Republicans were
beginning to move toward a compromise version of Treasury
Secretary Henry M. Paulson's original plan, but it remained to
be seen whether there would be enough votes to pass
legislation.

The report quoted Republican John Campbell as saying,
"I'm seeing both Republicans and Democrats start to move
toward voting for it. I can't tell you that there's a majority
at this point, but there's movement."

Democrats and Republicans from both houses of Congress,
joined by Paulson, had returned to the bargaining table
on Thursday in another unsuccessful attempt to craft a
proposal that could command majority support.

Democratic leaders said they would resume Friday morning
without Paulson, but they contended that no deal was possible
without at least some House Republican support, the report
added.

On Wednesday, President George Bush had assured that
tougher controls would be imposed on spending of taxpayers'
money.

"This rescue effort is not aimed at preserving any
individual company or industry -- it is aimed at preserving
America's overall economy," Bush said while addressing the
nation.

The resistance to the bailout package calmed down after
U.S. Treasury Secretary Henry Paulson agreed to impose some
limits on the pay packets of executives of the companies which
would be benefiting from the U.S.D. 700-billion assistance.

The bailout package was necessitated by the financial
crisis which saw collapse of 158-year old Lehman Brothers and
forced the administration to provide massive assistance to
giants like Freddie Mac, Fannie Mae and A.I.G.