Senate to Tweak Bailout —But not Much

Dissenting Dems, GOP want different changes
By Nick McMaster,  Newser Staff
Posted Sep 30, 2008 1:39 PM CDT
Senate Banking Committee Chairman Chris Dodd, D-Conn., left, arrives for a news conference with Sen. Jon Kyl, R-Ariz., right, on Capitol Hill in Washington, Monday, Sept. 29, 2008.    (AP Photo/Susan Walsh)
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(Newser) – Senators are scrambling to revive legislation for the financial bailout after its surprise failure in the House yesterday, but must strike the right balance to attract new House votes without driving away initial supporters, Bloomberg reports. House Republicans want an expanded role for the FDIC in the bailout and for the SEC to assess the real value of the troubled securities before the government buys them.

Democrats worry that either measure could hamper the bill’s effectiveness in stabilizing the financial system. They want lower pay limits and an allowance for bankruptcy judges to change the terms of a person's mortgage, which Republicans oppose. The modified bill could reach a vote as soon as tomorrow in the Senate, where it enjoys more support than in the House.