Tentative accord on bailing out bankers

Congressional negotiators and the Bush administration’s top Treasury officials are working on settling the final details of a historic $700 billion Wall Street bailout aimed at keeping credit flowing and saving the nation’s shaky economy from collapsing into a crippling recession.

Congressional leaders hope to have a House vote on the measure Monday, with a vote in the Senate coming later.

All sides expressed optimism and Senate Majority Leader Harry Reid, D-Nev., said he expected an announcement soon.

Under the plan, the federal government would purchase mortgage-backed securities and other bad debts held by banks and other investors. The money should help troubled lenders make new loans and keep credit lines open. The government would later try to sell the discounted loan packages at the best possible price.

Brief by The Associated Press