Sept. 30 (Bloomberg) -- President George W. Bush and Senate leaders vowed today to revive a $700 billion financial rescue plan amid evidence voters and lawmakers regretted yesterday's U.S. House vote to kill the bailout.

Senate Republican leader Mitch McConnell of Kentucky predicted lawmakers would wrap up work on the plan by the end of this week. A plunge in U.S. markets, partially erased today, makes it clear Congress must act, he said.

``I think the message from the markets yesterday was clear,'' McConnell said.

The House voted down the package 228-205, with 40 percent of Democrats and two-thirds of Republicans against it. It would take a shift of 12 votes to approve the legislation.

The plan would give the Treasury Department broad power to buy up troubled assets, chiefly mortgage-backed securities, that are saddling investors and financial institutions. Lawmakers said today they may revise the measure to give expanded authority to the Federal Deposit Insurance Corp., possibly raising the size of bank accounts it guarantees from $100,000 to $250,000.

Republican presidential nominee John McCain and his Democratic opponent Barack Obama today endorsed that idea.

A Rebuke to Leaders

Yesterday's House vote, a rebuke to Bush and leaders of both parties in Congress, triggered angry recriminations and the biggest one-day point drop in the history of the Dow Jones Industrial Average.

Stocks rose today, suggesting investor optimism that Congress would revive the rescue package. The Dow Jones Industrial Average rose 342 points, or 3.3 percent, at 2 p.m. in New York.

Voters flooded Capitol Hill offices today, decrying the defeat of the rescue package, a House Republican leadership aide said. Prior to yesterday's tally, lawmakers said sentiment was running about 100-1 against the plan.

Bush promised today that the House vote wouldn't be the final word. ``I realize this is a difficult vote for members of Congress,'' he said today at the White House. ``But the reality is that we're in an urgent situation and the consequences will grow worse every day.''

Senate Majority Leader Harry Reid, a Nevada Democrat, agreed. ``This continues to be our number one goal,'' he said.

White House Contact

Reid said he is in contact with White House Chief of Staff Josh Bolten to come up with a solution. Also, Reid said Obama informed him he talked to Bush about the plan.

``We're working together to try to resolve this important issue,'' Reid said.

Senate Banking Committee Chairman Christopher Dodd, a Connecticut Democrat, said some House members who voted down the plan are now having ``second thoughts'' and `want ``another shot at this.''

There are no votes scheduled today in the House or Senate in observance of the Jewish New Year Rosh Hashanah.

To contact the reporter on this story: Brian Faler in Washington at faler@bloomberg.net.

Last Updated: September 30, 2008 14:06 EDT