Lawmakers try to revise bailout, FDIC hike seen
WASHINGTON (AP) — Congressional leaders scrambled Tuesday to come up with changes to help them sell the failed $700 billion financial bailout to rank-and-file members. One idea gathering support: raise the federal deposit insurance limit to reassure nervous savers and help small businesses.
On Tuesday, Pelosi and Reid wrote to Bush, saying, “We welcome your statement this morning and are committed to working with you and our Republican colleagues to enact a bipartisan bill without further delay.”
The bill’s defeat came despite furious personal lobbying by Bush and support from House leaders of both parties. But the legislation was highly unpopular with the public; ideological groups on the left and the right organized against it, and Bush no longer wielded the influence to leverage tough votes. Even pressure in favor of the bill from some of the biggest special interests in Washington, including the U.S. Chamber of Commerce and the National Association of Realtors, could not sway enough votes.
Associated Press writers Tom Raum, Ben Feller, Andrew Taylor and Julie Hirschfeld Davis contributed to this report.