Congress said the bill would cover the full amount requested by Bush, but that the money would be distributed in installments. Additionally, the bill would include limits on executive pay for those firms seeking assistance under the bailout, and a way for the government to receive equity in such firms.

Sen. Christopher Dodd, D-Conn., and chairman of the Senate Banking Committee would not provide details but said lawmakers will sit down with Treasury officials to discuss the proposal.

Dodd said:

"We've reached a fundamental agreement on a set of principles, one, for taxpayers, which is tremendously important. We're very confident we can act expeditiously."

The stock market reacted positively to the news, with the DJIA up over 200 points at the time of this writing.

There was no word if the first in the series of debates between Barack Obama and John McCain would occur on Friday as scheduled; McCain had been seeking to postpone the debate in light of the financial crisis, but some had said he was "running from the debate" and from his falling poll numbers.