Bush appeals for quick approval of $700bn bailout plan. UK demands share

Economists warned Friday afternoon, Sept. 26, that if Congress fails to act in time, there will be “bloodbath” on world markets. The warning followed a rebellion in President George W. Bush’s own Republican party which disrupted negotiations on the verge of approving the $700 billion package approved by the White House to save foundering financial institutions by buying bad debts.
It was led by presidential candidate John McCain, who said the plan “will not protect the taxpayers and will sacrifice Main Street in favor of Wall Street.”
On Wall Street, nerves were stretched tighter after Washington Mutual Inc. became the largest U.S. bank to fail. British prime minister Gordon Brown arrived in Washington to hand in a bill of up to $95 bn for to rescue faltering British banks to be included in the American bail-out plan.
After McCain and his Democratic rival Barack Obama interrupted their campaigns to be in Washington for the financial crisis, Democratic leaders said the insertion of presidential politics had torpedoed seven days of negotiations. Majority leader Harold Reid pledged work would go forward without pause until the bail-out bill is adjusted so that the American taxpayer benefits – not just the banks, full oversight over its implementation is assured and failing executives are not rewarded with bonuses.
The Democrats appealed to the Republicans to “put their house in order” and work together to rescue the rescue plan without delay.
John McCain has announced the resumption of his presidential campaign and his decision to will face Barack Obama in their scheduled debate at Mississippi University.

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