Meanwhile, Bush has threatened to veto a House-passed Democratic measure aimed at preventing foreclosures. It would have the government step in to insure up to $300 billion in new mortgages for distressed homeowners; Bush says it would "reward speculators and lenders."

Senators are working on a version that would tap a fund drawn from Fannie Mae's and Freddie Mac's profits to pay for a new foreclosure-prevention program. Many community groups want that money directed to a low-income housing fund. Yet without diverting the affordable housing fund, many Republicans say the bill would be a bailout that would open taxpayers to undue risk.

Negotiations were continuing on the possible bargain, and action on the proposed Senate bill was expected to pick up on Tuesday.

Bush spokesman Scott Stanzel said the White House had no position on the proposed bill yet.

Verify and read more on this article

http://news.yahoo.com/s/ap/20080519/ap_on_go_pr_wh/bush