US Treasury Secretary Hank Paulson is set to make key concessions to his $700 billion (£378.3 billion) Wall Street bailout plan, including a clampdown on bankers' pay.

Hostility to the scheme is growing among people and politicians who see bankers getting a free leg-up at their expense. Congressmen on both sides of the House have expressed serious doubts on whether to back the plan.

So far Paulson has refused to consider limits on what bankers make. But now, with his scheme at risk, he says he will address the issue. As with the rest of the plan, details remain sketchy.

"The American people are angry about executive compensation and rightfully so," said Paulson, an ex-chief executive officer of Goldman Sachs who has earned tens of millions of dollars in the past few years.

"We must find a way to address this in the legislation, but without undermining the effectiveness of this programme."

Washington circles expect a deal will be done to pass Paulson's scheme in the coming days. US markets have been jittery this week amid concerns about whether the bailout will be approved.

Senate banking committee chairman Christopher Dodd said today: "We're not there yet, but there is a good possibility we'll get there in a day or so."

House Financial Services Committee chairman Barney Frank said Paulson "accepts the fact" the plan will enable the government to take equity stakes in participating firms — another of his "non-negotiable" sticking points at first.

But Paulson's office was cagey on whether taxpayers would be compensated through equity for their huge cash injection. Treasury spokeswoman Jennifer Zuccarelli said: "Nothing is final and discussions are ongoing."

Paulson has previously said bankers must have unfettered ability to set their compensation packages, or they might not apply for help under the scheme. But his change of heart on big pay awards for bankers may be too late.

House Republicans have warned the plan wouldn't pass. That threat, from his own party, led to a TV address by President Bush, to garner public support for the scheme.

Ironically Paulson's political opponents, the Democrats, have held out hope that the measures will be approved.

Frank is consulting Paulson as he leads negotiations in the House on crafting a joint Senate-House measure that Congress will vote on as early as this week.

A joint House-Senate bill may be ready by today, Frank said.