UPDATE 2-US Democrats claim Wall St. bailout breakthrough

Frank said he was pleased that the president spoke after calls by Democrats in Congress that he explain to the nation what was at stake. Democrats blamed the crisis largely on the failure of Bush to adequately regulate the financial industry.

Frank said that lawmakers writing the legislation have kept the Bush administration informed of what they intend to do.

"We know very well what Treasury and the Federal Reserve think would make this unworkable. I do not think we will have anything in here that they think would make it unworkable," Frank said.

The issue of government controls on compensation for executives of corporations that participate in the bailout had ignited a firestorm, with Americans complaining to their representatives in Congress that these corporate chiefs shouldn't be rewarded for failure.

"On the executive compensation thing, it went to the core of their (the Bush administration's) being," said Frank. "It was like asking the chief rabbi of Jerusalem to eat bacon on Yom Kippur. It was the most unthinkable thing they could think of." (Reporting by Richard Cowan and Thomas Ferraro; Editing by Doina Chiacu)