Bush calls in candidates over $700bn bail-out

President George Bush is bringing presidential candidates Barack Obama and John McCain into negotiations on the proposed $700bn rescue of Wall Street.

Democrats and Republicans are said to be close to an agreement on the bail-out plan, with more protection for taxpayers and new help for distressed home-owners.

Senior politicians and Bush administration officials have cleared away key obstacles to a deal on the unprecedented rescue, agreeing to include widely-supported limits on pay packages for executives whose companies benefit.

They are still wrangling over major elements, including how to phase in the huge cost without upsetting the markets.

A bipartisan meeting is due to take place today to begin drafting a compromise, which top Democrats say they hope could pass within days.

Germany’s finance minister said today that the financial turmoil rippling outward from Wall Street could cost the US its status as “superpower in the world financial system”.

Peer Steinbrueck said Germany’s economy – the biggest in Europe – is “relatively robust” despite the US financial crisis.

Mr Steinbrueck predicted that the likely outcome of the crisis would be that “the world financial system will become more multi-polar” as the US financial superpower status fades.