File Photo WASHINGTON: The US Capitol houses the legislative branch of the American government. The Senate occupies the building's north wing and the House of representatives is housed in the south wing. image:22902:4::0

It was not the type of reaction the White House was hoping for. Democrats and Republicans alike appeared skeptical of the President’s proposal. President Bush talked tough and attempted to use Dick Cheney to bring pressure to the Senate to pass the measure with little haste and less disclosure. Sound familiar?

Tuesday’s activity was punctuated by the news that the FBI is looking into potential fraud by mortgage finance giants Fannie Mae and Freddie Mac, and insurer American International Group Inc. and Lehman Brothers Holdings Inc. The Associated Press reports that the inquiries will focus on the individuals that ran them, according to a senior law enforcement official who spoke on condition of anonymity because the investigations are ongoing and are in the very early stages.

Mr. Bush’s plan almost immediately came under attack by the two men who hope to succeed him come January. Democratic candidate Barack Obama suggested that there should be no wholesale bailout of firms unless an effort is made to provide homeowners some relief. The Illinois senator also suggested that a second economic stimulus package should be a part of the bailout plan. Senator Obama also called for greater oversight and said Democrats and Republicans should reach agreement swiftly.

Republican Senator John McCain also expressed concern over the extent of the bailout, while laying out five additional provisions to hold companies accountable. McCain also pointed the finger at government regulators, suggesting that any plan required a new oversight mechanism and suggesting that the current White House proposal gave the Secretary of the Treasurer, this current one and any future one, too much power.

McCain recently been very vocal Obama for his alleged ties with former executives of Fannie Mae and Freddie mac. It has however, been learned that John McCain has some Freddie and Fannie concerns of his own due to his Campaign manager Rick Davis. Both candidates, to my chagrin, have not gone back to Washington to participate in these hearings while continuing to campaign. McCain was in Pennsylvania yesterday and will be in Virginia today. Obama has remained in Florida where he is campaigning and participating in debate camp for Friday's upcoming initial Presidential Debate at Ole Miss.

Monday Senator Christopher Dodd (D-CT), Chairman of the Senate Committee on Banking, Housing and Urban Affairs, rolled out his own counter proposal to the Bush bailout plan. In Senator Dodd’s proposal there are provisions to limit executive compensation, provide assistance to homeowners and an insurance or guarantee program for money market mutual funds. Dodd convened a hearing yesterday on the administration’s plan, with Secretary of the Treasurer Henry Paulson, Chairman of the Reserve Board Ben Bernanke and Securities and Exchange Commissioner Christopher Cox testifying in front of Senators clearly not in any rush to approve legislation without oversight provisions in it, no matter how much pressure is brought to bear by the White House. Talk about lawmakers finally doing their due diligence for the people they represent.

No matter the partisan spin, the market wasn’t buying in. Nervous investors, concerned that the federal government has yet to grasp the magnitude of the crisis, took their frustrations out on the trading floor. Trading was up at the opening of today's trading due to an offer by billionaire Warren Buffett. We will have to wait and see what transpires later today after the House of Representatives complete their hearing.