Lawmakers pledge to resume bailout work

WASHINGTON, Sept. 30 (UPI) -- Congressional Democrats and Republicans vow to resume discussions after defeat of the $700 billion bailout plan for U.S. financial markets.

U.S. Treasury Secretary Henry Paulson pledged to work with congressional negotiators to develop a compromise that would stabilize credit markets after the Dow Jones industrial average plummeted 778 points Monday, a one-day record, The Washington Post reported Tuesday.

"I will continue to work with congressional leaders to find a way forward to pass a comprehensive plan to stabilize our financial system and protect the American people by limiting the prospects of further deterioration in our economy," Paulson said.

Treasury officials said they were reviewing their options, looking at the actions they took when they assumed control of mortgage financiers Fannie Mae and Freddie Mac, bailed out insurance giant AIG and arranged takeovers of ailing institutions by more stable ones, The New York Times reported.

On the campaign trail, the senior domestic adviser to Republican presidential nominee John McCain blamed a speech by House of Representatives Speaker Nancy Pelosi, D-Calif., for poisoning the outcome, a 228-205 vote against, 13 votes shy the 218-vote total needed for passage.

"This bill failed because Barack Obama and the Democrats put politics ahead of country," said McCain adviser Douglas Holtz-Eakin.

Obama, the Democratic hopeful, delayed a campaign event in Ohio to speak with Paulson and Pelosi, the Post reported.

"One of the messages I have to Congress is, 'Get this done, Democrats; Republicans, step up to the plate,'" he told the audience.