Federal Reserve Chairman Ben Bernanke and Treasury Secretary Henry Paulson urged Congress on Tuesday to quickly pass a $700 billion financial bailout, warning that letting problems persist would have dire consequences for the national economy.
"We all recognize the gravity of the situation," said Sen. Chris Dodd, D-Conn., presiding over a congressional hearing on the crisis and the administration's proposed remedy. He said the "economic maelstrom" was caused by a combination of "private greed and public regulatory neglect."
Dodd and other key lawmakers have been in private negotiations with the administration since the weekend on legislation designed to allow the government to buy bad debts held by banks and other financial institutions. Key details remain unresolved, although the Democratic-controlled Congress is expected to vote in the next several days on a far-reaching measure.
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