The White House says it is pleased with the progress made toward the approval of a $700 billion bailout plan amid public anger over the package.
"We're pleased with the progress tonight and appreciate the bipartisan effort to stabilize our financial markets and protect our economy," said White House spokesman Tony Fratto.
After a night of marathon talks, US congressional leaders reached a broad outline for the bailout plan, which is aimed at saving banks from bad mortgage-related debts incurred by the US credit crunch.
A formal announcement of the deal is expected on Sunday, but the plan will not be finalized until lawmakers review the legislative language that was drafted, a senior administration official told Reuters on condition of anonymity.
The rescue plan would allow financial institutions with 'significant operations in the US' to sell their bad debts to the Treasury fund, which plans to resell the debts after their value increases.
The government has tried to calm taxpayers by providing them with profit-making opportunities with the institutions selling assets under the plan; however, many Americans consider the bailout plan as a sign of Wall Street's greed-is-good philosophy.
The proposed legislation would disburse the $700 billion in stages. The first $250 billion would be issued when the legislation is enacted while another $100 billion could be spent if the president decides it to be necessary.
The remaining $350 billion would be subject to congressional review, according to a statement issued by House of Representatives Speaker Nancy Pelosi's office early on Sunday.
Financial analyst Max Keiser, in an interview with Press TV on Friday, criticized the plan, saying Congress is not pursuing the interests of American citizens.
He indicated that most congressional members, including Pelosi and Senator John Kerry, are huge stock owners with clearly vested interests.
Stock markets across the globe have fallen sharply following the bankruptcy of big Wall Street firms, such as Lehman Brothers, Merrill Lynch and Washington Mutual, the latter marking the largest failure of a US banking giant.
Washington Mutual filed for bankruptcy on Saturday with $8 billion in debt.
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