FACTBOX: Possible steps ahead for bailout
WASHINGTON (Reuters) - The House of Representatives voted down a plan that would have given the U.S. Treasury Department authority to buy $700 billion in failing mortgage assets.
While the rejection stunned financial markets, lawmakers pledged to continue negotiations on the plan aimed at unclogging global credit markets.
There may well be ongoing negotiations on a revision that could result in substantial changes to the plan. However, the earliest a revised bill could come would be Thursday when the House returns from a break for the Jewish New Year holiday of Rosh Hashanah. At this point, there is no indication of when another bailout package might be completed or when a vote would be taken.
Below are some possible fates for the plan:
- Senate leaders who back the plan could begin to debate it when they reconvene Wednesday and so give the House a nudge before its members return to Washington Thursday.
- Lawmakers could scrap the rescue plan hatched by Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke in favor of a bill more acceptable to Republicans, but that is seen as unlikely.
- Treasury could tweak the existing plan to draw in more lawmakers from one of the parties. Because bipartisan backing is sought, that would mean aiming for Republicans.
- Proponents of the plan will aim to sway moderate Republicans who might flip after winning minor concessions in the legislation.
- Targets might be Rep. Judy Biggert of Illinois and Rep. Steven LaTourette of Ohio, both members of the House Financial Services Committee who may be feeling pressure from Wall Street.
- Republican Reps. Lincoln Diaz-Balart and his brother Mario Diaz-Balart might be under pressure as they represent South Florida which has been badly hit by the housing downturn.
- Republicans in California and the Southwest could feel pressure to back the government aid plan since their constituents are facing a downturn in the housing market.
(Reporting by Patrick Rucker and JoAnne Allen; Editing by Chris Wilson)
