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House Members Receive Angry Calls on Vote, Aides Say (Update3)

By James Rowley and Nicholas Johnston

Sept. 30 (Bloomberg) -- Lawmakers received a flurry of calls demanding that they revive the U.S. economy after the House's rejection of a $700 billion financial-rescue plan triggered a record drop in stocks, House aides said.

The calls countered an earlier outpouring of opposition to the legislation.

``A lot of people called to complain about losing their shirt,'' said Sean Brown, press secretary for Republican Representative Joe Barton of Texas, who opposed the measure. Calls have gone from overwhelmingly against the bill to about 60- 40 or 70-30 in favor of it, Brown said.

The $700 billion bailout failed by a dozen votes in the House as 40 percent of Democrats and two-thirds of Republicans voted against it.

A poll released today by ABC News and the Washington Post found the vast majority of voters are concerned about Congress's failure to act even as they are divided over what it should do. Eighty-eight percent said they were concerned the House vote could lead to a more severe economic decline.

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

Revive

Dodd, President George W. Bush and Senate leaders vowed to revive the rescue package for another vote, and Senate Republican leader Mitch McConnell of Kentucky predicted passage this week.

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

Michigan Republican Pete Hoekstra, who voted against the bailout, was among those getting a different message from constituents today. Calls were running about 90 to 95 percent against the bailout before the vote. ``Today it was trending more towards 50-50,'' spokesman Dave Yonkman said.

Chris Jackson, a spokesman for Georgia Republican Phil Gingrey, who voted against the bill, said callers don't necessarily endorse the $700 billion plan but want Congress to pass something.

U.S. stocks jumped today the most in six years after the biggest one-day point drop yesterday in the history of the Dow Jones Industrial Average. The Dow soared almost 5 percent, recovering most of its record 778 point drop.

Troubled Assets

The legislation would give the Treasury Department authority to buy up troubled assets, chiefly mortgage-backed securities, that are saddling investors and financial institution and drying up credit markets.

Lawmakers said they would make alterations in order to lure more votes, especially among Republicans.

One proposed revision would let the Federal Deposit Insurance Corp. guarantee bank accounts of up to $250,000 from the current $100,000. Both Republican presidential nominee John McCain and Democrat Barack Obama today endorsed that idea.

White House Chief of Staff Joshua Bolten met last night with House Republican leaders as the Bush administration stepped up a drive to revive the measure, according to an aide who spoke on condition of anonymity.

The chief negotiator for Senate Republicans, New Hampshire Senator Judd Gregg, said he is willing to consider proposals to expand the FDIC's role and the size of bank accounts it would insure.

There are questions about the type of accounts and the cost of these proposals, Gregg said as he went into McConnell's office to confer about what to do next.

``There is no need for a meeting'' of House and Senate negotiators until the House makes clear how it wants to proceed, Gregg said.

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

Dodd said today that lawmakers ``should end up with a positive result in next 24-48 hours.''

To contact the reporter on this story: James Rowley in Washington at jarowley@bloomberg.net.

Last Updated: September 30, 2008 17:22 EDT

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