WASHINGTON (AP) — Desperate to avoid another market-crushing defeat, House leaders won key converts Thursday to the $700 billion financial industry bailout on the eve of a make-or-break second vote.President Bush and congressional leaders lobbied furiously for the dozen or so supporters they’d need to reverse Monday’s stunning setback and approve a massive rescue plan designed to stave off national economic disaster.Anything but reassured, investors sent the Dow Jones industrials plunging another 348 points, suggesting Wall Street is expecting tougher economic times even if the measure is rushed into law. The Federal Reserve reported record emergency lending to banks and investment firms, fresh evidence of the credit troubles squeezing the country.”A lot of people are watching,” Bush pointed out — as if lawmakers needed reminding — and he argued from the White House that the huge rescue measure was the best chance to calm unnerved financial markets and ease the credit crunch. He was calling dozens of lawmakers, a spokesman said.Democratic and Republican leaders worked over wayward colleagues wherever they could find them.
Bailout hopes rise as more ‘no’ votes switch
By The Associated Press
October 1, 2008