House speaker's statement on bailout deal

(Reuters) - The following is a statement issued by U.S. House of Representatives Speaker Nancy Pelosi's office on changes to the Bush administration's $700 billion financial rescue plan request. Congressional leaders conducted a marathon negotiating session on Saturday before announcing they had a broad outline of a deal. Here is the statement issued early on Sunday:

Significant bipartisan work has built consensus around dramatic improvements to the original Bush-Paulson plan to stabilize American financial markets -- including cutting in half the Administration's initial request for $700 billion and requiring Congressional review for any future commitment of taxpayers' funds. If the government loses money, the financial industry will pay back the taxpayers.

3 Phases of a Financial Rescue with Strong Taxpayer Protections

- Reinvest in the troubled financial markets... to stabilize our economy and insulate Main Street from Wall Street

- Reimburse the taxpayer... through ownership of shares and appreciation in the value of purchased assets

- Reform business-as-usual on Wall Street... strong Congressional oversight and no golden parachutes

CRITICAL IMPROVEMENTS TO THE RESCUE PLAN

Democrats have insisted from day one on substantial changes to make the Bush-Paulson plan acceptable -- protecting American taxpayers and Main Street -- and these elements will be included in the legislation

Protection for taxpayers, ensuring THEY share IN ANY profits

- Cuts the payment of $700 billion in half and conditions future payments on Congressional review

- Gives taxpayers an ownership stake and profit-making opportunities with participating companies

- Puts taxpayers first in line to recover assets if participating company fails

- Guarantees taxpayers are repaid in full - if other protections have not actually produced a profit

- Allows the government to purchase troubled assets from pension plans, local governments, and small banks that serve low- and middle-income families

Limits on excessive compensation for CEOs and executives

New restrictions on CEO and executive compensation for participating companies: