Political deal reached on $700-billion U.S. bailout plan

Key legislators in the United States have reported an agreement in principle on a bailout of the financial industry designed to avert a deeper economic crisis.

Emerging from a two-hour negotiating session in Washington Thursday, Senator Chris Dodd said, "We are very confident that we can act expeditiously."

Dodd is a Connecticut Democrat who heads the Senate banking committee.

Senator Bob Bennett, a Utah Republican, told reporters: "I now expect that we will indeed have a plan that can pass the House, pass the Senate [and] be signed by the president."

Word of the deal came after U.S. President George W. Bush went on television Wednesday night to warn the country that its "entire economy is in danger" without at least $700 billion US in government funds being made available.

The two sides did not release details of the agreement in principle Thursday. It will now be presented to the Bush administration in hopes of a vote within days.

The breakthrough was reported just hours before Bush was to host presidential contenders Barack Obama and John McCain, as well as congressional leaders, at the White House for discussions on how to clear obstacles to the unpopular rescue plan.

More to come