A day of twisting arms on bailout

McCain and Obama join effort

WASHINGTON -- A wave of House converts jumped aboard the $700 billion financial industry bailout Thursday on the eve of a make-or-break second vote, as lawmakers responded to an awakening among voters to the pain ahead of them if stability isn't restored to the tottering economy.

Black lawmakers said personal calls from Democratic presidential nominee Barack Obama helped switch them from no to yes. Republicans and Democrats alike said appeals from credit-starved small businessmen and the Senate's addition of $110 billion in tax breaks had persuaded them to drop their opposition.

"I hate it," but "inaction to me is a greater danger to our country than this bill," said GOP Rep. Zach Wamp of Tennessee, one of the 133 House Republicans who joined 95 Democrats in rejecting the measure Monday, sending the stock market plummeting.

Still, the outcome was far from assured. Vote-counters in both parties planned to huddle first thing this morning to compare notes on coming up with the dozen or so supporters needed to reverse the stunning defeat.

Lawmakers were agonizing as they decided whether to change course and back the largest government intervention in markets since the Great Depression. "I'm trying desperately to get to yes," said Rep. Carol Shea-Porter, D-N.H.

Fears about an economic downturn sent the Dow Jones industrials down nearly 350 points Thursday, three days after Monday's historic 778-point drop. The Federal Reserve reported record emergency lending to banks and investment firms, fresh evidence of the credit troubles squeezing the country

Obama and his Republican rival, John McCain, phoned reluctant lawmakers for their help. McCain, in Denver, predicted the bill would pass the House.

Rep. John Lewis, D-Ga., told a closed-door meeting of House Democrats that he will support the bill after speaking with Obama about it. Other wavering lawmakers said Obama's entreaties had swayed them as well.

Congressional leaders worked over wayward colleagues wherever they could find them.

Rep. Steny Hoyer, the second-ranking House Democrat, said there was a "good prospect" of approving the measure but stopped short of predicting passage -- or even promising a vote. Nonetheless, the vote is expected today. "I'm going to be pretty confident that we have sufficient votes to pass this before we put it on the floor," Hoyer said.

The top Republican vote-counter, Rep. Roy Blunt of Missouri, predicted the measure would be approved.

Rescue, not bailout

Minds were changing in both parties in favor of the much-maligned measure, which would let the government spend billions of dollars to buy bad mortgage-related securities and other devalued assets from troubled financial institutions. If the plan works, advocates say, that would allow frozen credit to begin flowing again and prevent a serious recession.

GOP Rep. Ileana Ros-Lehtinen of Florida, said she was switching her no vote to a yes after the Senate added some $110 million in tax breaks and other sweeteners before approving the measure Wednesday night.

"Monday what we had was a bailout for Wall Street firms and not much relief for taxpayers and hard-hit families. Now we have an economic rescue package," Ros-Lehtinen told The Associated Press.

Republican Rep. Jim Ramstad of Minnesota also switched to yes, partly because the Senate attached the bailout to legislation he spearheaded to give people with mental illnesses better health insurance coverage.

Rep. Gresham Barrett, R-S.C., also said he'd back it.

Democratic Rep. Emanuel Cleaver of Missouri was switching, too, said spokesman Danny Rotert, declaring, "America feels differently today than it did on Monday about this bill."