Bush to go on TV to push $700B financial bailout plan

U.S. President George W. Bush will go on television Wednesday night to talk to Americans about the crisis in the financial system as the administration's $700-billion US bailout plan continues to meet resistance from Congress.

The White House said Bush's prime-time speech at 9:01 p.m. ET will be between 12 and 14 minutes long, and will be delivered from the state floor of the White House.

Press secretary Dana Perino said the president wants to tell Americans how the crisis affects them and help them understand the depth of the problem.

Administration officials are waging a tough battle on Capitol Hill to try to persuade both Democratic and Republican legislators to approve the bailout plan and prevent financial market conditions from getting even worse.

Markets under 'extraordinary stress': Bernanke

U.S. Federal Reserve chair Ben Bernanke told Congress on Wednesday that global financial markets remain under "extraordinary stress." He said worsening conditions could further jeopardize an already troubled economy.

U.S. Treasury Secretary Henry Paulson has proposed buying up to $700 billion in bad debt held by financial institutions due to the dramatic decline of the U.S. housing market.

Legislators have voiced skepticism about the plan, and some report getting hundreds of e-mails and phone calls from voters objecting to the use of public money to bail out huge financial institutions.

Democratic Senator Chuck Schumer says members are hearing "intense anger" from their constituents.

Some members are insisting that assistance for financially hard-pressed homeowners be included in the bailout package, while others want a cap on compensation paid to executives of the troubled financial institutions.

Republican officials, speaking on condition of anonymity, said Paulson has bowed to demands to limit the pay packages of executives whose companies benefit from the bailout.

A draft of a Democrat plan obtained by the Associated Press shows that Senate banking committee chair Chris Dodd also wants the government to get a stake in the companies helped by the unprecedented rescue.

It also would add layers of congressional oversight, including an emergency board to keep an eye on the program with two House and Senate appointees.

McCain doesn't think bailout plan will pass

Republican presidential candidate John McCain went on television to say he doesn't think Congress will pass the bailout package in its current form and call on members to set politics aside to find a solution.

"It has become clear that no consensus has developed to support the administration's proposal," he said. "I do not believe that the plan on the table will pass as it currently stands and we are running out of time."

McCain said he was suspending his campaign to return to Washington and urged Bush to convene a leadership meeting from both houses of Congress, including himself and Democratic presidential candidate Barack Obama.

He is also asking for a postponement of Friday night's televised debate with Obama until action has been taken to resolve the crisis.

"I'm confident that before the markets open on Monday, we can achieve consensus on legislation that will stabilize our financial markets, protect taxpayers and homeowners, and earn the confidence of the American people," McCain said.

With files from the Associated Press

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