US presidential Congressional leaders outline bailout bill deal ...
Bush calls for approval of financial rescue plan ... hopefuls Barack Obama and John McCain have broadly welcomed an outline multi-billion dollar plan to help shore up the US financial system.
They were speaking after Congressional leaders said "great progress" had been made towards a compromise proposal during late-night talks on Saturday.
The government wants $700bn (Ј380bn) to buy bad debts from ailing US financial institutions and ease their finances.
Details of the proposal could be released as early as Sunday.
The US administration wants a deal to be announced before markets open in Asia on Monday morning, though it is not yet clear when a bill will be introduced into Congress.
Asked if a bill would be debated on Monday, the chairman of the House Financial Services Committee, Barney Frank, told the Reuters news agency: "Definitely."
'Necessary step'
The Republican candidate for the presidency, Senator John McCain, said that subject to seeing the specifics of the agreement, he hoped to be able to add his support.
"I'd like to see the details but hopefully yes, and the outlines that I have read of it that this is something that all of us will swallow hard and go forward with. The option of doing nothing is simply not an acceptable option," he told ABC TV.
Mr Obama said he had been encouraged by the progress made by members of Congress, but warned it was "the culmination of a sorry period in our history".
"When taxpayers are asked to take such an extraordinary step because of the irresponsibility of a relative few, it is not a cause for celebration. But this step is necessary," he said.
Pay-off restrictions
The outline deal gives the treasury secretary powers to oversee the two-year plan, but critics have insisted on the inclusion of greater oversight and reporting.
The BBC's Justin Webb in Washington says the tentative agreement that appears to have been reached is thought to include a measure to limit the pay for executives of companies which seek financial assistance, which was a key demand of the Democrats.
At the request of Republicans, who have strongly criticised some elements of the administration's proposal, the accord is believed to include the setting up an insurance program for mortgage-backed securities.
Earlier, a statement from the House of Representatives Speaker, Democrat Nancy Pelosi, said the new agreement would see $250bn issued immediately, and another $100bn when the president wanted to spend it.
But the final $350bn would only be released after review and approval by Congress.
There would also be measures to protect taxpayers, who would be given an ownership stake and profit-making opportunities in relation to any assets that were sold.
It also puts new restrictions on executive compensation for participating companies, including no "golden parachute" payoffs.
Earlier on Sunday it was announced that the two-year project would be supervised by a board of officials, including the Federal Reserve chairman, and scrutinised by Congress's investigative arm and an independent inspector general.
Finally, the government could use its power as the owner of mortgages and mortgage-backed securities to help more struggling homeowners modify the terms of their home loans.
'All night'
US Treasury Secretary Henry Paulson, who took part in the late-night talks, said that Congressional leaders had been "working very hard".
"We've made great progress toward a deal, which will work and will be effective in the marketplace, and effective for all Americans," he told a news conference.
But Ms Pelosi said the deal had to be committed to paper before it could be formally agreed.
(BBC)
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