Voice of America

U.S. President George Bush is urging Congress to “send a strong signal” to markets in the United States and around the world by passing a $700 billion plan to rescue banks and other financial companies.

The president’s spoke Monday hours before the U.S. stock markets opened for trading. He was seeking to assure investors that the measure will help the economy start to grow.

Congressional leaders had been involved in intense negotiations over the past several days – and made several changes to the original proposal from the White House.

Mr. Bush says the legislation will address the bad home loans that are at the center of the financial crisis, and that it contains additional provisions that will benefit U.S. taxpayers.

The U.S. House of Representatives is scheduled to vote on the massive bailout bill later today. 

Investors around the world are worried the plan will not boost the U.S. economy.

Major Asian stock markets closed sharply lower as investors tried to determine the impact of the bill.  European markets were also lower in midday trading.

The measure would allow the U.S. Treasury secretary to spend up to $700 billion, in installments, to buy bad investments from troubled financial firms.   Those bad investments have made banks reluctant to lend money to businesses and consumers. The administration says that lack of credit threatens to stall the economy.

The draft of the bill was circulated Sunday to allow members of the House of Representatives to review it before voting on it Monday, with a Senate vote most likely later in the week.

Congressional leaders and Treasury Secretary Henry Paulson said they wanted to make the draft of the bill public before Asian markets opened Monday. 

Speaker of the House of Representatives Nancy Pelosi said the bill will first put money into financial institutions to stabilize the economy.  She says it will reimburse the taxpayer through ownership of shares in businesses that receive bailout money – and through appreciation in the value of purchased assets.  And Pelosi says the bill will mandate oversight of the bailout plan and reform regulations of Wall Street.

Senior Republican lawmakers gathered Sunday evening in Washington for a closed-door meeting to discuss the measure. House Minority Leader John Boehner said many do not want to support the bill, but he is encouraging every member to do so.

The proposal includes limits on payments to executives of rescued companies, and a requirement for the government to try to keep homeowners from losing their homes.

Both U.S. presidential candidates, Republican John McCain and Democrat Barack Obama, on Sunday praised the deal for including an independent oversight body and taxpayer protection.