Bush Administration Tells Congress to Act Quickly or Risk Recession

GOP Lawmakers: 'Grim Anger' Over Plan

House Republican sources told ABC News' Viviana Hurtado that a Tuesday morning briefing by top officials from the Treasury Department, the Federal Reserve, and the White House at the House Republican Conference left them with "grim anger and reluctant willingness to go forward."

GOP lawmakers were told that if they did not act soon, the impact to American families would be significant: there could be more job losses and savings could be put at risk.

Senior officials from the Treasury Department, the Federal Reserve and the National Economic Council warned that more erosion of confidence in the banking system would lead to further contraction of the economy, and the impact to American families could be significant job losses and savings put at risk.

"We are angry that the SEC, the Fed and Treasury did not warn us earlier. Still, we are extremely aware of the danger of not supporting the $700 billion bailout package, and in huge numbers, we will back the plan," said one House Republican member who attended the meeting.

But with this economic meltdown described by the NEC official as a problem a "long time in the making," some GOP lawmakers resent the pressure to fast track the White House backed rescue package.

"I get that the risk to the economy and families of doing nothing far outweighs backing the plan. But the plan has no guarantees, except trust in Bernanke and Paulson," a Republican lawmaker told ABC News.

Republican leaders pledged to work toward a bailout after a private lunch Tuesday with Paulson and Vice President Dick Cheney.

"I think many of my members feel that the issue of executive compensation ought to be addressed in the package. But we're anxious to act, and to act quickly, to restore confidence in the markets and in our country," said Republican Sen. Mitch McConnell of Kentucky.

"What's important to remember here is that if we don't take this type of stabilizing action the cost to the taxpayer in lost jobs, lost savings, lost opportunity, is huge," said Republican Sen. Judd Gregg of New Hampshire.

Republican Sen. Jon Kyl of Arizona, the minority whip, said that GOP senators do not like the concept of a government bailout for the financial markets, but "most, however, are convinced that there is a crisis in America, and that we cannot shirk our responsibility, and must act."

McCain May Hold Key to Bailout Passage

Democratic presidential candidate Barack Obama outlined Tuesday specifically what he wants to be included in Paulson's plan at a news conference in Clearwater, Fla.

Obama argued the administration's plan must include protections to ensure that taxpayer dollars are not used to further reward the bad behavior of irresponsible CEOs on Wall Street, and he called for the setup of an independent board to provide oversight and accountability over the money.

Obama also said if the government makes a profit on this deal -- which is highly unlikely -- then every penny must be given back to taxpayers, and he said the final plan must provide help to families who are struggling to stay in their homes.

"If the plan that emerges does not address the principles that I discussed then I will strongly recommend to Secretary Paulson that he go back to the drawing board and find an approach that does address them," Obama said.

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