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After The Bailout

The best drama in New York isn’t on Broadway, it’s on Wall Street. And the saga is taking a fascinating twist.

As Congress argues over the provisions of the $700 bailout the White House has backed down on a major sticking point. Treasury Secretary Henry Paulson said he would agree to demands from critics in both parties to limit the pay packages of Wall Street executives whose companies would benefit from the proposed bailout.

"The American people are angry about executive compensation and rightfully so," Paulson told the House Financial Services Committee. "We must find a way to address this in the legislation without undermining the effectiveness of the program."

Meanwhile, Republican presidential nominee John McCain said he was returning to Washington and was asking Democratic rival Barack Obama to agree to delay their first debate, scheduled for Friday, to deal with the meltdown that has engulfed the political race. Both leaders are hoping they can unify their parties and bring about a resolution more quickly.

Congressman Chris Shays (R) Connecticut tells us he expects the bill to come up on Friday or Saturday. Lawmakers understand they shouldn't leave town until this is resolved.

We'll be watching.



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Trader disclosure: On Sept 24, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (MSFT), (CY), (WMT); Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Najarian Owns (AAPL) And (AAPL) Puts; Najarian Owns (BBBY) Put Spread; Najarian Owns (BIIB) Calls; Najarian Owns (MS) And (MS) Puts; Najarian Owns (NOK); Najarian Owns (RIMM) Call Spread; Najarian Owns (WB) Put Spread; Najarian Owns (XLF) Call Spread; Finerman Owns (GS); Finerman's Firm Owns (DELL), (JNJ), (MSFT), (NOK), (SUN), (TSO), (VLO), (WM); Finerman's Firm Is Short (IYR), (IJR), (MDY), (SPY), (IWM), (COF)