Congress is back at the rescue plan

House Financial Services Committee Chairman Barney Frank, D-Mass.

TEXT OF STORY

Stacey Vanek-Smith: Democratic and Republican leaders are back at the White House trying to find common ground on that $700 billion bailout package. Talks broke down yesterday. Marketplace continues its coverage of the financial crisis. Jeremy Hobson has the latest on the talks.


Jeremy Hobson: A month before election day, remember this: It is never politically beneficial to support a $700 billion package that bails out Wall Street. But this morning, President Bush made the case that doing nothing could lead to financial collapse.

Tape of President Bush: There are disagreements over aspects of the rescue plan, but there is no disagreement that something substantial must be done.

House Democrats could probably pass the plan without their Republican colleagues, but they don't want to make a politically dangerous move like this on their own. Congressman Barney Frank says it's the President's job to get members of his own party to support the administration's proposal. Here he is speaking today on "The Early Show" on CBS.

Tape of Congressman Barney Frank: I signed on for a lot of jobs; I didn't know I was going to be the referee for the internal Republican ideological civil war.

There's worry on Wall Street about just how long the political war in Washington will go on. It's getting more expensive by the day for institutions to borrow money from each other, which is theblood floww of the global economy.

In New York, I'm Jeremy Hobson for Marketplace.

About the author

Jeremy Hobson is host of Marketplace Morning Report, where he looks at business news from a global perspective to prepare listeners for the day ahead.

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