Congress to include mortage aid in bailout

Scrambling for a quick accord on the $700 billion bailout, the Bush administration and leading lawmakers have agreed to include mortgage aid and strong congressional oversight along with unprecedented help for failing financial institutions, a key lawmaker said Monday.
Unimpressed, investors sent stocks plummeting anew, pushed oil up $16 a barrel and propelled gold prices ever higher as they searched for a safe place to park their money.
President Bush prodded Congress to pass the administration’s rescue plan quickly, declaring, “The whole world is watching.” And there did seem to be movement in talks between the White House and Capitol Hill.
Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee, said “a great deal of progress has already been made.” And a government official with knowledge of the talks said the administration had agreed to create a plan to help prevent foreclosures on mortgages it acquires as part of the bailout a key demand of Democratic lawmakers.
Under other additions the Democrats are asking to the administration package, according to a draft of the plan obtained by The Associated Press.