Notable Calls

Keefe Bruyette notes Tuesday was a relative quiet day in Washington but initial indications seem to confirm their belief contained in Tuesday morning's note that they believe that Congress will try to resuscitate the TARP later this week.

Negotiations on resurrecting the TARP were low key on Tuesday. However, the consistent theme of comments throughout the day was that Congress would try to bring the TARP bill back for another vote.

The pace of negotiations will likely pick up on Wednesday. One item that seems to have some traction and that may get added to the bill is increasing the deposit insurance cap from $100,000 to $250,000. That should make the bill more popular with several members as this idea is seen as a protection for Main Street. Both presidential candidates support the idea.

Businesses that could be affected if the credit markets continue to seize up have become more engaged and are pushing members who voted "no" to support the plan if it comes up for another vote. This is a very important move as it changes the focus of the TARP from a bailout of Wall Street to that of economic stabilization for the entire country and should help give political cover to members of Congress who have been wary of being seen as bailing out Wall Street.

There are also reports that phone calls to congressional offices in support of the plan picked up after the vote failed on Monday.

They think a vote on Thursday in the House is a little optimistic and even Friday is a stretch. They think it is more likely that a vote will come over the weekend or on Monday.

Notablecalls: Fyi