WASHINGTON, Sept. 26 (UPI) -- Congressional and Bush administration leaders said they hope they can fashion a Wall Street bailout plan before markets open Monday.
Negotiators planned to continue talks Friday on the $700 billion plan to stabilize U.S. financial markets after two sessions -- one at the White House that included the presidential candidates -- failed to produce consensus.
Congressional negotiators announced shortly before the White House meeting that agreement on principles for the bailout plan had been reached. However, during the White House meeting, House Minority Leader John Boehner, R-Ohio, said his caucus didn't agree to any deal and offered an alternative, creating the rift.
Democrats and Republicans were beginning to move toward a compromise version of Treasury Secretary Henry Paulson's original plan, but sources told the Los Angeles Times they didn't know whether it would get enough votes to pass.
"I'm seeing both Republicans and Democrats start to move toward voting for it," Rep. John Campbell, R-Calif., said. "I can't tell you that there's a majority at this point, but there's movement."
"Whatever is going to be done has to be done this weekend," said Rep. Lee Terry, R-Neb., who supports congressional action. "Allowing it to go beyond Sunday into Monday will devastate the markets."
The working proposal included features many critics said the original draft offered by Paulson lacked: compensation limits for executives of companies participating in the bailout, a provision for taxpayers to share in any profits from the sale of distressed assets and distribution of the $700 billion in three stages instead of one.
The alternative floated by conservative House Republicans would call for Wall Street firms to fund an insurance program to bail out less-solvent institutions by creating an insurance program for investment banks similar to the commercial bank plan. The plan also called for more deregulation, temporary tax breaks and relaxation of other rules to encourage investors to invest the financial system instead of using government funds.
Before the White House meeting ended, U.S. President George Bush warned participants about the impact on the U.S. economy if the measure failed, The Washington Post (NYSE:WPO) reported.
"If money isn't loosened up, this sucker could go down," Bush said, according to one person in the room.
German police capture two terror suspects
BERLIN, Sept. 26 (UPI) -- German police boarded a Dutch airliner Friday and grabbed two suspected terrorists who had been under surveillance for several months, police officials said.
Police removed the men from an Amsterdam-bound KLM flight at the Cologne-Bonn airport, The New York Times (NYSE:NYT) reported.
In a related operation, officials said they found apparent suicide notes when searching the men's apartments.
It wasn't known whether the men were carrying materials such as weapons or explosives or intended to hijack the airplane, initial reports indicated.
German police said they believe the two men "were suspected of wishing to participate in a jihad and possible attacks," German news agencies reported. The men were said to be a 23-year-old Somali and a 24-year-old German of Somali descent.
German authorities also said they are looking for two other suspects believed to be traveling to Europe from the Pakistan-Afghanistan border area.
A week ago, German police announced the arrest of two men suspected of links to a bombing plot last year that shocked the country because of the amount of explosive chemicals seized and the fact that German converts to Islam were involved, the Times said.
Pakistani forces fire on U.S. helicopters
WASHINGTON, Sept. 26 (UPI) -- U.S. and Pakistani forces exchanged gunfire touched off by Pakistani troops firing on U.S. helicopters near the Pakistani-Afghan border, officials said.
Pakistani officials said the two Kiowa OH-58 reconnaissance helicopters entered Pakistan's tribal regions, which the Pentagon denied, the Los Angeles Times reported Friday.
No casualties were reported. After forces from a Pakistani outpost fired on the aircraft, a small-arms fight ensued when a ground unit of U.S. and Afghan troops returned fire, U.S. military officials said.
The U.S. military said the helicopters were to support a small ground force conducting "routine operations" Thursday on the border while Pakistani officials said the aircraft moved into Pakistani airspace and flew over the North Waziristan tribal area for 20 minutes, the Times reported.
Tensions between the United States and Pakistan have risen since the U.S. military stepped up cross-border raids and the number of attacks from unmanned Predator aircraft in tribal areas.
Pentagon spokesman Bryan Whitman called the incident a misunderstanding but said Pakistanis should have known their target.
"We know the challenges on the border but it is not too difficult to imagine who is flying helicopters there," he said. "Pakistan is an ally, not an enemy."
Pirates grab Ukrainian ship off Somalia
KIEV, Ukraine, Sept. 26 (UPI) -- A Ukrainian ship possibly carrying a load of tanks has been seized by pirates off the Somalian coast, Ukraine's Foreign Ministry announced.
The ship, Faina, flying the Belize flag, was en route to Kenya, Ukrainian officials said. They told the RIA Novosti news service that the cargo was being verified.
Earlier reports said the vessel was carrying military equipment, possibly about 30 T-72 tanks.
Tomax Team Inc., the ship's owner, said the vessel's captain reported three boats with armed men on board had approached the ship, after which contact was lost. There were 21 people reported aboard.
More than 30 piracy attacks have been committed this year off the coast of the East African nation, Novosti said.
Family tyrant executed for niece's death
MCALESTER, Okla., Sept. 26 (UPI) -- Jesse James Cummings, described as a cruel, violent patriarch and bigamist, has been executed for killing his 11-year-old niece.
Cummings, 52, who proclaimed his innocence as he lay strapped to a gurney awaiting a lethal injection, was put to death late Thursday at the Oklahoma State Prison in McAlester for the 1991 death of Melissa Moody.
A second murder conviction for the slaying of his half sister, Judy Moody Mayo, Melissa's mother, had been overturned on appeal. One of Cummings' wives confessed he forced her to kill Mayo.
"The justice system let me down on this case," Cummings said shortly before he died. "It turned a blind eye to truth in this."
At the time of the slayings, Cummings lived in Phillips, Okla., with his ailing father, his wives, Sherry and Juanita Cummings, and one child of each woman, the Tulsa World said. His half-sister and niece lived in nearby Tushka.
His wives testified that Cummings used violence, rape and incest to control his family.
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