It is evident that progress has been made to permit consideration and use by Treasury of some of the concepts put forward by House Republicans when the "Paulson Plan" is implemented (including using a federal insurance approach in some instances in lieu of using appropriated funds to provide credit markets liquidity) .
This has allowed the leadership on both sides of the aisle late Friday to sound positive on prospects for ultimate approval of a modified version of the Administration's plan. Nonetheless, some lawmakers are concerned that when Congress goes out of session to observe the Jewish holidays early next week, possibly without having formally adopted the plan, there will be strong constituent sentiments expressed against any of the so-called bailout plans. This could have repercussions later next week when final votes on the plan could take place.
We will continue to monitor developments.