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Dems claim compromise on bailout

Negotiators head to White House

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Congressional leaders today said they'd reached compromises on some disputed issues surrounding the Bush administration's plan to empower the Treasury Department to buy billions in risky investments from banks and financial institutions to prevent a lending collapse. Details of the compromise have not been released. But it's expected to at least partially address criticism that the plan originally put forward by the Treasury Department over the weekend included no direct aid to troubled borrowers, and left taxpayers on the hook for a bailout of companies and investors who fueled the housing boom and bust through reckless lending. The Bush administration is seeking authorization to borrow $700 billion to buy up "toxic assets," including mortgage-backed securities backed by risky loans. Many of the banks and financial institutions that own such assets are either in danger of going out of business or have cut back on lending because they cannot raise capital. The c...