WASHINGTON ÷ Faced with roiling markets and shaky investor confidence, the House on Tuesday adopted new criminal penalties for business fraud as lawmakers scrambled to get corporate crackdown legislation to President Bush.

Legislation to create stiff penalties and jail terms for executives who deceive investors was adopted by a unified Senate on Monday. The Republican-led House passed a bill in April to tighten oversight of the accounting industry, but did not act on legislation to create criminal penalties.

The House measure, approved 391-28, is tougher than the Senate bill, Republican leaders said. Democrats disagreed.

ãThis is a tough bill that cracks down on the corporate crooks,ä Rep. James Sensenbrenner, R-Wis., chairman of the House Judiciary Committee, said in floor debate.

The House measure would create criminal penalties for company officials who retaliate against whistle-blowers, while the Senate measure provides only civil penalties for that.

Unlike the Senate bill, however, the House measure does not extend the period of time in which defrauded investors can bring lawsuits against companies.

A spokesman for House Speaker Dennis Hastert, R-Ill., said lawmakers would try to take initial steps toward resolving differences with the Democratic-controlled Senate on overall legislation to crack down on corporate wrongdoing. The House accounting oversight measure is widely considered weaker.

A Republican aide, who spoke on condition of anonymity, said GOP leaders still held out hope that a final compromise with the Senate could be reached by the end of next week. Passage of a separate bill to mete out stronger penalties could give GOP lawmakers a campaign asset when they return home for the monthlong summer break beginning July 26.

But Reps. Mark Foley, R-Fla., and Mike Rogers, R-Mich., were circulating a letter among GOP colleagues Tuesday asking Hastert to have the House pass the Senate bill in order to speed legislation to President Bushâs desk ÷ a move that Senate Democrats are seeking.

Democrats accused GOP leaders of reversing themselves only because Americansâ confidence in business and the markets has become badly shaken and the issue of corporate accountability is resonating in this congressional election year.

Rep. John LaFalce, D-N.Y., described the Republican move as ãa deathbed conversion.ä

Rep. Maxine Waters, D-Calif., told the Republicans, ãYouâre trying to jump on the bandwagon at the last minute when you should have been there a long time ago.ä

Democrats said the House bill fell short. They objected to it being rushed through to passage without giving them the chance to propose amendments.

Federal Reserve Chairman Alan Greenspan told Congress on Tuesday that the criminal penalties included in the Senate measure are ãthe most important part of the bill.ä

Greenspan also said the economy is on the road to full recovery but will keep feeling the effects of last yearâs recession. Corporate executives should be held accountable to accurately state the financial condition of their companies, he said.

ãThe effects of the recent difficulties will linger for a bit longer, but as they wear off, and absent significant further adverse shocks, the U.S. economy is poised to resume a pattern of sustainable growth,ä Greenspan told the Senate Banking Committee.

After the Senate vote Monday night, President Bush said, ãI am pleased the Senate has now acted on a tough bill that shares my goals. · We owe it to Americaâs workers and shareholders to crack down on wrongdoing and fix the system to prevent future abuses.ä

Bush urged Congress to get him a bill to sign before adjourning for its summer recess.

ãThe president thinks they both passed tough bills and the bill that heâs going to sign is going to be a tough bill and heâs going to work with the House and Senate to bring both sides together to get it done,ä White House spokesman Ari Fleischer said Tuesday.

Bush and the Republicans have been on the defensive as Democrats have made corporate accountability a political issue in this congressional election year.