US Congress makes ‘great progress’ on bank bailout

Sunday 28th September 2008, 8:08AM BST.

US Congress makes 'great progress' on bank bailout A £382 billion deal to rescue the US financial system is close to being completed, according to congressional leaders.

Nancy Pelosi, the Democratic speaker of the House of Representatives, said “great progress” had been made on the bailout plan.

“We have to get it committed to paper so we can formally agree,” she told reporters.

The $700 billion (£382 billion) deal will see the US government borrowing cash from the money markets to purchase bad mortgage-related debts from banks.

According to Kentucky senator Mitch McConnell, the Senate Republican leader, an announcement and congressional vote on the plan is expected on Monday.

Henry Paulson, the US treasury secretary, who took part in the talks, said of the bailout: “I think we’re there.”

“We’ve been working very hard on this and we’ve made great progress toward a deal, which will work and will be effective in the marketplace, and, you know, effective for all Americans.”

The bipartisan plan is believed to include the Democratic party’s demand that a limit be placed on the salaries of executives in charge of financially insecure companies.

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