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The Financial Crisis: This Day—One Year Ago, Sept. 27, 2008

Bailout politics arise.

Saturday seems more sedate than it has in weeks, but it's a false calm, as Washington scrambles to find common ground on a financial rescue plan.

This Day 1 Year Ago - A CNBC Special Report - See Complete Coverage
This Day 1 Year Ago - A CNBC Special Report - See Complete Coverage

House Democrats issue a strongly worded memo denigrating an alternative bailout proposal from House Republicans. The memo says the GOP plan would amount to "a true bailout of Wall Street fat cats," reports Steve Liesman.

But lawmakers continue to huddle with Treasury Secretary Hank Paulson through the evening, seeking to nail down an agreement to create a massive government fund to buy up distressed debt from financial institutions staggered by failed mortgages.

What You Were Reading:

"I'm convinced that by Sunday we will have an agreement that people can understand on this bill," says Rep. Barney Frank (D-Mass.), chairman of the powerful House Financial Services Committee.

By midnight Saturday, a deal is reached.

The Crisis: 1 Year Later - A CNBC Special Report - See Complete Coverage
The Crisis: 1 Year Later - A CNBC Special Report - See Complete Coverage

House Republicans, who had worried that the $700-billion program would put taxpayers on the hook, win a provision that will set up an insurance program for mortgage-backed securities.

In addition, the US government will get stock warrants, in theory allowing for a return on its investment as bailed-out companies recover.

The deal looks done but legislators await full details on paper.