White House Summit Comes Up Empty

Hard Bargaining But No Resolution In Bipartisan Meeting Involving McCain, Obama And Bush

(CBS/ AP)  As turmoil on the U.S. financial markets threatened Thursday to upend the presidential campaign and scratch the first debate between Barack Obama and John McCain, it appeared hard bargaining on the Bush administration's $700 billion bailout had failed to seal a deal.

Republican Sen. Richard Shelby emerged from a late afternoon White House meeting that included President George W. Bush, both presidential candidates and top congressional leaders to declare there was no agreement.

"I don't believe we have an agreement," said the ranking minority member of the Senate Banking Committee. "There's still a lot of different opinions."

By late Thursday, a deal that had been tentatively agreed to by key party leaders earlier in the day broke apart after evening meetings among lawmakers, including Treasury Secretary Henry Paulson produced no resolution. More meetings are expected Friday.

Neither McCain, a Republican, nor Obama, a Democrat, spoke to reporters as they left through a White House exit closed to journalists. Two aides appeared, however, and said Obama would be making a statement at a Washington hotel within minutes and that McCain had gone back to the Capital building.

Earlier, after a two-hour negotiating session in Congress, Sen. Chris Dodd had said, "We are very confident that we can act expeditiously." Dodd, a Democrat, heads the Senate Banking Committee. Rep. Barney Frank, a Democrat who is chairman of the committee handling the measure in the House of Representatives had a similar assessment.

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Read text of the bailout principles agreed upon by the Senate Banking Committee

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In an extraordinary display of political maneuvering, McCain announced on Wednesday he was suspending his campaign to return to Washington to help with the negotiations. Lawmakers already were well on their way to agreement before the four-term Arizona senator was able to reach the capital from New York.

McCain had also said he wanted to delay Friday's first presidential debate. While welcoming news of a breakthrough, McCain's campaign still was not prepared to commit to the Friday forum.

"There's no deal until there's a deal," said McCain spokesman Brian Rogers.

He said McCain was optimistic about the agreement but developments so far had not changed the candidate's plans not to debate.

As the financial chaos threatened to consume the presidential campaign, Bush on Wednesday made his first address to the nation in a prime-time television slot this year.

He declared "our entire economy is in danger" and predicted "a long and painful recession" unless Congress took quick action. But his prodding of lawmakers was already appearing incongruous because congressional leaders were saying a deal was close.

Obama had rejected McCain's call for delaying the debate, but joined his opponent in issuing a statement declaring that American politicians must overcome partisanship or "risk an economic catastrophe."

Both Mississippi Gov. Haley Barbour and University of Mississippi Chancellor Robert Khayat spoke to reporters Thursday, saying they believed the debate would be held as scheduled.

"I expect there to be a debate tomorrow night, and I'm looking forward to it," Barbour said at a brief news conference in Oxford. "I don't have any inside information but that's my expectation."

Khayat said his staff had been in contact with both campaigns and had heard nothing to suggest the forum would be delayed.

Earlier Thursday, Obama spoke by satellite to the Clinton Global Initiative in New York and renewed his refusal to put off the debate.

"The American people deserve to hear directly from myself and Sen. McCain about how we intend to lead our country," he said in an address from Florida. "The times are too serious to put our campaign on hold, or to ignore the full range of issues that the next president will face."

The heart of the enormous bailout plan involves the government buying up sour assets of shaky financial firms, action designed to keep essential credit markets open and preventing what some fear would be an economic calamity not seen since the Great Depression of the 1930s.

In their joint statement, McCain and Obama said now is the time to "rise above politics for the good of the country. We cannot risk an economic catastrophe." But politics remained front and center.

The candidates spoke privately Wednesday in drawing up the document, but McCain beat Obama to the punch with the first public statement, saying the Bush plan to prop up the financial community seemed headed for defeat and a bipartisan solution was needed urgently.

"It has become clear that no consensus has developed to support the administration's proposal," McCain said. "I do not believe that the plan on the table will pass as it currently stands, and we are running out of time."

Thursday morning, McCain said he was confident that Congress would reach consensus before markets open Monday. Dodd agreed.

Frank had said he was not even sure the crisis session with Bush, Obama and McCain still was necessary, but added "it's always fun to go to the White House." On Wednesday he accused McCain of "trying to take credit for something that's already happening without him."

[tbuckl]

I want to vote to the person who will follow this GREAT American idea and concept and return my America to me and my fellow citizens forthwith..."We hold these truths to be sacred & undeniable; that all men are created equal & independent, that from that equal creation they derive rights inherent & inalienable, among which are the preservation of life, & liberty, & the pursuit of happiness; that to secure these ends, governments are instituted among men, deriving their just powers from the consent of the governed; that whenever any form of government shall become destructive of these ends, it is the right of the people to alter or to abolish it, & to institute new government, laying its foundation on such principles & organizing its powers in such form, as to them shall seem most likely to effect their safety & happiness." Thomas Jefferson

[jd2408]

Hope you all got lots of potatoes in the basement ladies and gentlemen. If the right thing isn''''t done soon we can stop talking about recession and get aquainted with world depression. Then we will have to listen to Dems and Repubs blaming each other for another for the responsibility for another ten years. Figure it out guys. In the end, the middle class pays, no matter what.

Posted by Inketolstoy at 09:39 AM : Sep 26, 2008
+ report abuse
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Don''t you forget that Iraq had WMDs. We are faced with another fear factor threat. We MUST do this NOW, in less than one week or else. Sound familiar?
If Congress can buy these bad debts from greedy Wall Street and sell most of them and possibly make a profit, so they say, then why can''t Wall Street do the same thing ??? This is the same Corporate America that tells you the global economy is good for you even if it does take our jobs, allows imports of poison and creates big profits for them. This is the same Corporate America that has been fighting for open borders for their cheap slave labor that takes our jobs, closes hospitals, crowds schools and lowers wages but makes big profit for them.

Our Government is in bed with them. Its time we take back our own country. No bail outs for the crooks. Let Wall Street fix its own mess and vote these crooks out of office in November.

[im4honesty]

This is embarrassing!

McCain said he MUST ''suspend'' his campaign and fly to Washington to rescue the country concerning the ''bail-out''. There is overwhelming evidence that his campaign was, in no way, suspended. And, when asked for input during the Whitehouse meeting... he couldn''t even comment!!

THIS IS A FVCKING CIRCUS!!!

[bbinfla]

Thanks McCain

[trillion1]

When can the American taxpayer expect a bailout?

[pastdue1]

BAILOUT - Just say NO!!!!!
Posted by Bob5ford at 10:00 AM : Sep 26, 2008

Did you say NO to any of the Iraq debaucle that has cost us far more than this bailout and continues to do so?
Did you say NO when Halliburton ripped off the government of billions and the gov''t continues to pay them and now they''re taking everything to Dubai?
Did you say NO when Cheney and Bush set up an energy policy which has costs you billions and continues to cost you billions, on top of the extra bucks it costs you every time you stop at a gas pump.
And, while it sounds and feels good to finally say NO to all the "stuff" that this administration has shoved down our throats and blown our taxpayer money on , this is a really scary time to start saying NO.

[pastdue1]

Posted by hjedtyj at 09:27 AM : Sep 26, 2008

This debate is not only about McCain and Obama.
1. It is an opportunity for each to inform the public on their positions.
2. Mississippi has invested over $5million in this debate, on top of the organization, time and volunteerism that has gone into it.
3. Both Obama an McCain made this committment long ago and the Debate Commission acted on their honoring their committments.
4. The debate is handled by a non partisan organization.

The town hall meetings were organized by the McCain campaign to showcase McCain and possibly palin. They are partisan meetings attended and seeded with McCain supporters.

Lastly, McCain is using this crisis to try to make the claim that he puts country first. Why else did the negotiations STOP when he blew into town? Country first should insure that he use every opportunity to educate the public on this crisis, and the debate is his best forum to do this.

[bob5ford]

BAILOUT - Just say NO!!!!!

[kenammons]

stop the coporate fat cat bailout now save the working people of this country and dont let little george the terrible waste 10,000 for every family in this country

[inketolstoy]

Hope you all got lots of potatoes in the basement ladies and gentlemen. If the right thing isn''t done soon we can stop talking about recession and get aquainted with world depression. Then we will have to listen to Dems and Repubs blaming each other for another for the responsibility for another ten years. Figure it out guys. In the end, the middle class pays, no matter what.