WASHINGTON - TOP Republican Senator Richard Shelby insisted on Thursday there was no deal in sight from Congress to fix Wall Street and mend the faltering economy despite talk of a breakthrough.

Briefing reporters during a break from emergency talks at the White House, the highest ranking Republican on the Senate's banking committee contradicted the panel's Democratic chairman, Mr Christopher Dodd.

'That agreement is obviously no agreement,' Mr Shelby said after Mr Dodd had emerged from talks with senior Republicans and Democrats to announce 'a fundamental agreement on a set of principles' to rescue Wall Street.

The White House talks hosted by President George W. Bush grouped top lawmakers as well as the two men vying to succeed him after the Nov 4 election - Republican John McCain and Democrat Barack Obama.

Mr Shelby, who said Mr McCain and Mr Obama were 'courteous' to each other, brandished a paper from Ivy League economists who deny that the US economy faces an imminent financial collapse without action from Congress.

Treasury Secretary Henry Paulson was offering a 'flawed' plan to buy US$700 billion' (S$995 billion) worth of distressed mortgage-backed assets, the Republican said as he appealed for more thoughtful consideration by Congress.

'Even if the Paulson plan works perfectly, which many doubt, including nearly 200 economists, it will not stimulate new lending, stop de-leveraging, help distressed homeowners, or jump-start the economy,' he said in a statement.

'I do not believe this is the right approach. We did not get into this situation in a matter of days, and we are not going to fix it in a matter of days.' -- AFP