WASHINGTON - Congressional Republicans and Democrats report agreement in principle on financial bailout of the financial industry designed to avert a deeper economic crisis. The White House is reacting cautiously. Leaders are describing it as an agreement in principle on the general direction of the bailout bill.

The Bush administration has agreed to a limit on pay for executives of bailed-out financial institutions. Lawmakers have also been pushing to phase in the 700-billion-dollar cost and allow the government to take an ownership stake in troubled companies rather than just buying their bad debt.

House Financial Services Committee Chairman Barney Frank says "there really isn't much of a deadlock."

The White House is calling the agreement "a good sign." Still, deputy press secretary Tony Fratto says the president will want to hear from Treasury Secretary Henry Paulson and "take a look at the details."

The White House has planned a meeting for Thursday afternoon with congressional leaders and presidential candidates Barack Obama and John McCain.

Emerging from a two-hour negotiating session Thursday morning, Senator Chris Dodd said, "We are very confident that we can act expeditiously."

Senator Bob Bennett, a Utah Republican, told reporters: "I now expect that we will indeed have a plan that can pass the House, pass the Senate (and) be signed by the president." Dodd is a Connecticut Democrat who heads the Senate Banking Committee.

Stay with NEWSCHANNEL 13 and krdo.com for the latest developments on this announcement as they come into the newsroom.