Congress Pushes for Oversight in Historic Wall Street Bailout

Bush added his voice to the urgency of the legislation today and urged Congress to quickly pass the measure and to drop its plans for amendments, saying their demands would "undermine the effectiveness of the plan."

"Indeed, the whole world is watching to see if we can act quickly to shore up our markets," Bush said.

Big Banks Make Moves to Avoid Further Woes

In an indication of how fast the banking industry was deteriorating, Goldman Sachs and Morgan Stanley, the country's two remaining investment banks, sought and were quickly granted a late-night change in their designation. The federal government allowed them to be reclassified as bank holding companies.

In return for tighter regulation under their new designation, Goldman Sachs and Morgan Stanley would gain greater access to central bank funds and would find it easier to buy retail banks.

Morgan Stanley also signed a letter of intent to sell 20 percent of its company to Japan's largest bank, Mitsubishi UFJ Financial Group.

As Congress resumed haggling over what kind of authority to grant the Treasury Department, the most consistent demand from Republicans and Democrats alike was for an oversight board to be established to keep an eye on the buying and selling of a mountain of virtually worthless mortgages and debts that American banks and investment houses have accumulated, and that now threaten to torpedo the country's economy.

Key members of the House and Senate objected to Paulson's demand that he be granted the authority he asked for -- without any additions or qualifications -- and that it be done quickly.

"He's being entirely unreasonable," Rep. Barney Frank, D-Mass., the House Banking Committee chairman, told "Good Morning America."

Frank was joined by Rep. Christopher Shays, R-Conn., in telling "GMA" that they would insist that an oversight board be created to keep an eye on the country's massive investment.

"We will have a strong oversight board" that will report to Congress monthly, Frank said.

"I don't trust anybody to have the amount of money he asked for," Frank said.

Congress Wants Oversight Board for Historic Wall Street Bailout

Frank also made a point of wanting to cap those multimillion dollar golden parachutes for executives, even when their companies go bankrupt -- or cost taxpayers billions.

"We want to limit those as a condition for giving them aid," Frank said. "If Secretary Paulson would agree to that, we could move quickly. But if he insists somehow that that's a terrible thing, then it slows it down."

Paulson said on Sunday that action to limit executive bonuses could be done later, and he didn't want the rescue operation to be "punitive."

Republican Shays resisted being rushed into something.

"Many of us voted to go to a war that we regret," Shays told "GMA." "I think there are a number of members who say we need enough time. I'm not talking a week, but enough time to debate this."

In addition, there is resistance to Paulson's proposal that the bailout include foreign companies, an idea to which Shays gave some qualified support.

"Foreign companies have helped to keep us afloat," Shays told "GMA." "We want them to invest in our economy. We don't want them to go away."

Senate Echoes Call for Debate on Economic Package

On the Senate side, there were similar demands for some changes in Paulson's bailout blueprint.

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