CNN says that a deal has been reached — sort of. A bipartisan counterproposal to Bush’s $700 billion bailout plan has been drafted. The plan calls for caps on executive pay, and provides oversight on the Treasury’s actions.

CNN says:

Both parties and both houses agreed Thursday to a set of principles on revisions to the rescue plan, which calls for the Treasury Department to buy up bad mortgage securities from banks in an effort to get them to lend again.

The proposal will help homeowners, curb executive pay packages at participating firms and provide oversight of Treasury’s actions, said Sen. Christopher Dodd, D-Conn., a key architect of the congressional effort. He did not provide details but said lawmakers will sit down with Treasury officials to discuss it.

“We’ve reached a fundamental agreement on a set of principles, one, for taxpayers, which is tremendously important,” Dodd said.

Americans should “legitimately feel better about the overall approach,” said Rep. Barney Frank, D-Mass., who heads the House Financial Services Committee.

CNN also noted that the stock market was up over 300 points on news that a bailout may be forthcoming.

Congress has a plan [CNN]

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