An unprecedented White House emergency meeting broke up on Thursday night without agreement on the Bush administration’s financial rescue package, after another day of intense stress on the money markets and earlier reports that a deal had been reached, reports the FT. As political wrangling escalated, a hard core of Republicans in Congress continued to oppose a deal, even as presidential candidates John McCain and Barack Obama met President George W.Bush and congressional leaders to hammer out a compromise. Under principles endorsed by both parties, the administration would be granted the full $700bn it sought, but with a first tranche of just $250bn and a further $100bn available without further congressional approval. Congress would get a chance to vote on the remaining $350bn at a later date. The US Treasury was considering the proposals Thursday night. The proposed compromise would also modify the administration’s original proposals so as to prevent “inappropriate executive compensation for participating companies”.  See the text of the lawmakers’ agreement, courtesy of the WSJ.

This entry was posted by Gwen Robinson on Friday, September 26th, 2008 at 5:38 and is filed under Capital markets, People. Edit this entry.