Democrats and Republican politicians appear to have settled their differences over a 500 billion euro rescue package for the US financial system.
Both sides say they will support the proposal to buy up bad debts from America’s ailing banks.
House of Representatives Speaker Nancy Pelosi made the announcement.
“Working in a bi-partisan way we sent a message to Wall Street,” she said. “The party is over, the era of golden parachutes for high-flying Wall Street operators is over. No longer will the US taxpayer bail out the recklessness of Wall Street. And that’s the news that this legislation brings.”
The original package was revised after Congress insisted on stricter controls on the money than the White House had wanted.
Now Republican Party members in the House of Representatives have dropped their opposition to the changes.
John A Boehner, the Republican Minority Leader in the House of Representatives said: “We have urged our colleagues to support this bill and we’ve had a long conversation with our members because they’ve got concerns. They want to do the right things on behalf of their constituency, they want to do the right thing on behalf of their country. That doesn’t always mean the word ‘yes’ – the word we’re looking for. But we’re working with our members and want them to support this because it is the right thing to do for our country.”
Congressional negotiators amended the treasury department’s original proposal to add new oversight powers and conditions that would protect taxpayers.
The government will get the money in stages.
Initially, dollars to the value of 172bn euros and 67 billion euros could be released at the request of the White House. Congress would have the power to veto the remaining 242 bn euros.
The full House of Representatives and the Senate must approve the bill. There will be a vote in the House later today. The Senate will follow probably on Wednesday.