Dems, GOP Close In on Bailout Plan

Lawmakers nearly pulled an all-nighter yesterday negotiating Henry Paulson's bailout plan and vowed to unveil it tomorrow, the New York Times reports. “Staff worked until 3am this morning on the bailout,” Senate majority leader Harry Reid said, and “they made significant progress.” But there are still some sticking points and details to be hashed out.

While they still plan to drop $700 billion on toxic Wall Street assets, Democrats and Republicans are wrangling over what to do with possible gains. Securities that Washington buys will have value and may even result in a profit for taxpayers. Dems want 20% of any profit directed toward affordable housing; the GOP would like to see the whole bundle back in the Treasury. (More Congress stories.)