Proponents look to make bailout palatable
Bush, congressional leaders seek ways to sway plan’s critics
WASHINGTON — With the White House and congressional leaders struggling to resurrect a rescue of the nation’s struggling financial markets, they are searching for ways to sweeten the deal for reluctant lawmakers.
The idea of boosting the cap on federal bank deposit insurance has gained some momentum, with both candidates for president, Democrat Barack Obama and Republican John McCain, proposing lifting it to $250,000. The Federal Deposit Insurance Corp. insures individual bank deposits up to $100,000.
“The presidential candidates’ support for increasing the FDIC cap is welcome news,” House Minority Leader John Boehner (R-Ohio) said Tuesday.
Meanwhile, public support for the Bush administration’s proposed rescue plan has softened, according to a survey that started before the measure’s dramatic collapse on the House floor Monday and ended as stock values plunged afterward.