Members of Congress and the US administration held an intense round of talks on Wednesday over the rescue plan for Fannie Mae and Freddie Mac as they tried to forge a compromise that would lead to its approval as early as next week.

A proposal by Hank Paulson, the US Treasury secretary, over the weekend to give the Treasury unlimited power to increase its credit line to the mortgage companies and invest in their equity has been met with some scepticism in Congress, particularly among Republicans worried about the potential risk to taxpayers.