Democrat says hopes bailout bill ready by Thursday

WASHINGTON (Reuters) - Democrats in the House of Representatives and Senate are working to come up with their consensus version of a financial bailout bill, which they hope to have ready by Thursday, a top House Democrat said on Wednesday.

Speaking to reporters after a hearing, House Financial Services Committee Chairman Barney Frank said Democrats would then turn to negotiations with Republicans.

"I hope we'll have something by tomorrow," the Massachusetts lawmaker told reporters.

At the end of the hearing where Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke defended the plan that would give Washington $700 billion in buying-power to unclog credit markets, Frank counted off some areas of consensus.

Despite Treasury's initial opposition to the idea of compensation caps for executives of companies that reach for government help, Frank said the Bush administration seems to have accepted the idea.

"I think he accepts the fact that it's going to go in there," Frank said of Paulson's attitude toward a compensation provision in a bill that would ratify the plan.

"He's permissive about equity," Frank said of Paulson's view of the government taking an equity stake in a company that seeks aid.

"Congress is still writing the bill... Ultimately, $700 billion has to be available but does it all have to be there all at once without any kind of constraints? I think that is an issue."

(Reporting by Mark Felsenthal and Patrick Rucker; Editing by Diane Craft)