The United States House of Representatives will vote later today on a 700 billion dollar rescue plan for the financial sector; later this week it will be the Senate's turn. Leaders of both parties in Congress and, on behalf of the government, Treasury Secretary Henry Paulson have agreed to the plan.

The two presidential candidates Barack Obama and John McCain also gave the deal their blessing.

"Ultimately I believe that we have to get something done"

Barack Obama
Nevertheless it remains uncertain whether the anger about the expensive Wall Street rescue operation among many representatives has cooled down enough for them to approve the plan in Congress. Drastic measures

"Let's get this off the table, let's get this deal done, signed by the president and get moving"

John McCain
Next year, one of the two presidential candidates, John McCain or Barack Obama, will have to face the financial consequences of the deal which puts hundreds of billions of US dollars into saving Wall Street.

Neither is enthusiastic about the prospect, but both know drastic measures are necessary.

The rescue plan involves 700 billion dollars being spent on buying up stagnated investments which have shaken the foundations of banks and other financial institutions. President George W Bush will only be able to authorise the legislation once Congress has approved it.
Leaders of the Democratic and Republican parties in the House of Representatives and the Senate have agreed on the details of the deal following days of chaotic negotiations.

Golden parachutes
As a result managing directors who have failed will no longer receive salaries, bonuses and golden handshakes, stresses Nancy Pelosi, leader of the Democrats in the House of Representatives and speaker of the House. Ms Pelosi said,

"We sent a message to Wall Street: the party is over... The era of golden parachutes for high flying Wall Street operators is over."

Tax payers
The Republicans are mainly annoyed at the scale of the rescue package: the tax payer having to bail out Wall Street for its excesses. Like the Democrats, they also had reservations about the huge amount of power the treasury secretary would have had in the original version of the deal, which allowed him a free hand in the how 700 billion dollars was to be spent.

The current plan has three phases: 250 billion dollars is immediately available, a further 100 billion dollars will be released when the president feels it is necessary, and the remaining 350 billion dollars will only be available after a second vote in Congress. As a guarantee for tax-payers, financial institutions which are helped by the government will be made to pay for any losses made by the government in five years time.

The price to pay
Republican Senator Judd Gregg shares the frustrations of his fellow Congress members about the price ordinary Americans have been made to pay for the greed of Wall Street. Nevertheless, he wants to prevent worse things for the ordinary man on Main Street, if the credit crisis is not resolved. According to Mr Gregg: "If the credit markets melt down in Wall Street, Main Street melts down a few days later..."

Later today it will become clear in the House of Representatives whether the party leaders, the government and the two presidential candidates have been able to convince enough Congress members to reluctantly swallow the Wall Street rescue package.

* RNW translation (nc)