Sep 26, 2008 4:51 pm US/Central
Fate Of Financial Bailout Plan Remains Unclear
CHICAGO (CBS) ―
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President George W. Bush makes remarks during a meeting with members of congress including the Presidential candidates Republican John McCain (L) and Barack Obama (R) in the Cabinet Room on September 25, 2008.
Tim Sloan/AFP/Getty Images
The rush is on to rework failed attempts at a financial rescue plan, and the fate of that bailout remains unclear.
As CBS 2 Chief Correspondent Jay Levine reports, talks continue, but there are major sticking points.
Lawmakers spent half the day blaming each other for apparently snatching defeat from the jaws of victory. Democrats blamed John McCain for the GOP's backing away from the president's bailout plan. But with both McCain and Barack Obama departing for their first presidential debate, the talks were back on, though the bickering was far from over.
"The Republican House has to decide what they want to do," said Senate Majority Leader Harry Reid.
"We are moving forward on a plan that's better for the American taxpayer," said Rep. Adam Putnam (R-Fla.).
The alternative plan calls for the government to "insure" risky assets instead of buying them with taxpayer dollars.
"That is what this fight has been about, trying to make sure we do the right thing for our country, while protecting people's taxes," House Minority leader John Boehner said.
A group of economists, including several dozen from Chicago, has been urging them to go even further.
"There are plans out there that before getting into the pocket of the taxpayers, that will make those responsible for the banking decisions pay," said Paola Sapienza of Northwestern University's Kellogg School of Management.
That's what polls show most Americans want – a plan to rescue the banks, restore the flow of mortgage money, and business loans to avoid a deep depression and protect American jobs. People want a longterm solution over a quick fix.
"You don't want to punish banks because you want to be punitive but you want all to understand that when you make a decision you must bear the consequences of that, there's not anyone to come and rescue you," Sapienza said.
The word CBS 2 is getting into our newsroom from Capitol Hill Friday night is that they're optimistic that a bailout bill will be agreed on, perhaps by midnight.
Click here to let us know what you think of the government bailout plan.
And keep an eye on the latest developments in the legislation negotiations with
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