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Saturday, September 27, 2008

White House and Congress Reached Financial Rescue Deal


Finally, the Bush administration and Congressional leaders have reached a tentative deal on a rescue of imperiled financial markets that could cost taxpayers hundreds of billions of dollars.


The House could vote on it Sunday and the Senate on Monday. Nancy Pelosi, the House Speaker, informed the accord just after midnight Saturday and said it still has to be put on paper. Moreover, Henry Paulson, the Treasury Secretary, talked of finalizing the deal but added: "I think we're there."

The rescue plan would spend up to $700 billion, most of it on buying extremely devalued mortgages from the housing market's collapse and other bad loans held by tottering banks and other investors. The goal is to prevent credit from drying up and causing a meltdown of the U.S. economy.

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