Mumbai: President George Bush's $700 billion bailout package for failed American banks appears to have run into trouble following fierce opposition from both sides of the US Congress.

The plea for a swift passage of the bailout package, made by top officials of the Bush administration, including Federal Reserve chairman Ben Bernanke and Treasury Secretary Henry Paulson, got a cold reception following reports that the FBI was investigating fraud allegations against several financial companies that have been bailed out by the government earlier.

Media reports said the FBI was looking at potential fraud by mortgage giants Fannie Mae and Freddie Mac and the Insurance giant American International Group Inc. Lehman Brothers was also said to be under the lens.

Many lawmakers said it was hard for them to approve the massive financial bailout package in the current form and all indications now are that the passage of the package may not be easy or swift as the administration wants it.

The reports of fraud investigations have only helped to deepen the divide between top administration officials and the Congress leaders.

The Washington Times, meanwhile, said lawmakers remain ''deeply skeptical about the bill,'' and had warned ''that it will take longer than a week to pass and will include provisions that the administration opposes,'' adding, ''leaders struggled to keep their members open-minded in the face of surging outside opposition from a diverse range of voices.''

While Democrat leaders like House speaker Nancy Pelosi, Senate majority leader Harry Reid and others plotted a strategy for bringing the bailout legislation to the floors of both chambers later this week, reports said the ''growing Republican doubts will make it harder for momentum to build in favour of the proposal.''

''Most Americans don't believe the government has responsibility for bailing out financial firms with taxpayer money, a core part of the rescue plan Congress is considering to halt the near-meltdown of the nation's financial markets.'' according to a Los Angeles Times-Bloomberg poll.

Around 55 per cent of the respondents said ''they did not believe the government should be responsible for funding a bailout plan."

House of Representatives Financial Services Committee chairman Barney Frank, however, said he didn't think the level of dissent on either sides was enough to derail a major bailout package.

The bailout package got some support from Warren Buffets' $5 billion acquisition into  Goldman Sachs Group Inc. Stock futures also looked up, although the credit markets were still restrained.