The Senate is preparing for its final debate on a revamped $700 billion financial rescue plan Wednesday, two days after the first version failed in the House of Representatives. It will be a challenging for policymakers to reach an agreement - and the issues may stretch far beyond bipartisan negotiation. For Republicans working under an exceedingly unpopular President, the days of simply voting along party lines may be over.
According to William Brandt Jr., a top banking analyst and President and CEO of Development Specialists, Inc., the strain in Congress has something to do with the strategy the Bush administration has adopted of attempting to push some major legislation through by creating a sense of urgency on Capitol Hill.
Referencing the Patriot Act as legislation that at the time was supported but later became unpopular, Brandt explained that some Congressional republicans might be reluctant to stand behind the president as he nears the lame duck stage of his presidency.
"This administration has a way of coffee nerving everyone into doing something," Brandt told RTTNews, adding that often policymakers are stuck with "buyer's remorse 8 months on."
"Republicans have seen poll numbers drop through the floor," he explained. Most of the Congressional officials will still be in office next year he noted, but Bush will be long gone by then.
The bottom line, Brandt said, is that there is still time to work out an acceptable plan.
"The ceiling is not falling," he said. "Tiles are loose, lights are blinking…but congress can debate for several days to get this better."
One of the tenants of the new plan is raising Federal Deposit Insurance Corporation insurance on bank accounts from $100,000 to $250,000 following a suggestion by Democratic candidate Barack Obama.
Brandt said he is in "absolute and utter accord," except he believes that the number should be higher - up to $500,000.
There is widespread belief that the legislation will pass in the Senate Wednesday, despite concerns from both sides. Wednesday afternoon, President George W. Bush said he is "confident" that the plan will be passed.
Bush also praised the boost in the Federal Deposit Insurance Corporation from $100,000 to $250,000, a key tenant of the new plan.
"It's very important for us to pass this piece of legislation so as to stabilize the situation, so that it doesn't get worse," Bush told reporters at the White House.
The president urged members of Congress to take the legislation "very seriously," noting its importance in keeping the credit markets functioning.
According to Brandt, plan or no plan, there is still a lot of volatility facing the economy.
"Grab the arms of your chair it's going to be a great ride," he said. "We're nowhere near the finish line."
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.