Bailout Vote Could Come by Weekend

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Lawmakers were poised on Thursday to vote on a financial-sector rescue plan by the weekend after hammering out most details and disagreements in an overnight session.

Lead negotiators on both sides of the aisle from the House and Senate gathered Thursday morning to mend remaining bridges before meeting with President George Bush to finalize the package in the afternoon. Lawmakers hope to seal the deal Friday after constructing a final draft of the legislation in another overnight session.

There will certainly be modifications to Treasury Secretary Henry Paulson's $700 billion three-page proposal, which was sparse on details of how funds would be used and did not offer any direct assistance to homeowners.

Rep. Barney Frank (D., Mass.), chairman of the House Committee on Financial Services, said Thursday afternoon that the only remaining sticking point in negotiations was whether to allow bankruptcy judges to restructure mortgages to help Americans in danger of losing their homes. That measure is "still in discussion," Frank said, on the way to meet with the president.

Frank also said there will be restrictions on executive compensation, including a "say on pay" provision for shareholders. There will also be a provision to stem foreclosures and "very strong oversight" included in the bill. Rather than disperse the full $700 billion all at once, Frank also said there will be a "phasing in" of payments in smaller increments. Sen. Charles Schumer (D., N.Y.) had advocated the measure.

The Bush administration agreed in principle to Democrats' demands to include limits on executive pay and perhaps award taxpayers equity stakes in companies that receive public assistance, lawmakers said.