The contentious Asbestos Bill has been put on hold in the US Senate, with the Democrats forcing it off the order paper until next year. Majority Leader Senator Bill Frist, a Republican, says he will continue talks with the minority Democrats and other parties – mainly insurers and lawyers – to see if a compromise can be reached.

Senator Frist has negotiated compromises on many of the remaining outstanding issues that have held up the legislation, under which asbestos companies and insurers would tip $157 billion into a claims pool. The Democrats – who have been accused of being under the influence of the plaintiff lawyers – are listening to union and lawyer bids for a $184 billion fund.

He says a quick decision is necessary to limit economic damage, and his Senate staff are expected to continue meeting with various parties over the funding issues. Another group has been given the job of identifying those issues where there is little disagreement.

Last July AIG Chairman and CEO Maurice Greenberg said the legislation was doomed. While the Republicans ­– and the insurers – are trying to keep it alive, Mr Greenberg’s prediction has so far proved accurate.