President Bush summoned Barack Obama, John McCain and legislative leaders to an extraordinary White House summit after warning Americans and Congress on Wednesday night that failing to act on a $700 financial industry bailout could lead to "a long and painful recession." Earlier, he bowed to Democratic demands to limit the pay of executives whose tottering companies would be rescued.
Democrats and Republicans were nearing agreement on the rescue legislation, the most sweeping government intervention in the market since the Great Depression, and set a meeting early Thursday to draft a bipartisan bill.
Bush acknowledged in a prime time television address Wednesday night that the bailout would be a "tough vote" for lawmakers.
The administration appeared to be softening its resistance to Democrats' demand that the eye-popping cost be phased in rather than dispensed all at once.
But Bush strongly urged Congress to act quickly to pass the plan, warning Americans in his 12-minute speech that failing to act fast risked dire economic consequences such as disappearing retirement savings, rising foreclosures, lost jobs and closed businesses.
"Without immediate action by Congress, America could slip into a financial panic, and a distressing scenario would unfold," Bush said as he worked to resurrect the unpopular bailout package.
With the administration's original proposal considered dead in Congress, top House leaders issued an upbeat statement late Wednesday saying there was progress toward revised legislation that could pass.
"We are committed to continuing to work cooperatively and on a bipartisan basis to safeguard the interests of the American taxpayers," said Speaker Nancy Pelosi, D-Calif., and House Republican leader John Boehner of Ohio.
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