WASHINGTON -- In his first full-blown meeting with reporters at the White House since April 29, President George W. Bush asserted that the U.S. banking system is basically sound, with deposits insured up to $100,000.

"I think the system basically is sound, I truly do," Bush said. "I understand there's a lot of nervousness. The economy is growing. Productivity is high. Trade's up. People are working -- it's not as good as we'd like. And to the extent that we'll find weakness, we'll move."

Addressing turmoil in the financial markets where the government has been forced to throw a lifeline to mortgage giants Fannie Mae and Freddie Mac, Bush called on Congress to move quickly to put into force legislation designed to help prop up Fannie Mae and Freddie Mac.

Bush said the two troubled mortgage companies play a central role in the nation's housing-finance system and that government action to help them was not a bailout , since the two would remain shareholder-owned companies.

"I don't think the government ought to be involved in bailing out companies," Bush said.

The plan would temporarily increase a long-standing Treasury line of credit that could be provided to either company. Treasury also said it would, if necessary, buy stock in the companies to make sure they have enough money to operate.

Turning his attention to soaring gas and energy prices, Bush also urged the Democratic-run Congress to quickly lift a ban on offshore drilling, following his action a day earlier to end a presidential ban on such drilling, he said.

"I readily concede it won't produce a barrel of oil tomorrow, but it will reverse the psychology," Bush said. He also expressed confidence that Americans would find ways to conserve energy without the help of a White House campaign to urge them to do so.

At the other end of Pennsylvania Avenue, Ben S. Bernanke, chairman of the Federal Reserve, offered a gloomy assessment of the economy to the Senate Banking Committee. He avoided the word "recession" but said the economy continues to grow at a sluggish pace and the housing market continues to weaken.

And in California, police have been called in to tame an angry throng of IndyMac Bank customers trying to pull money out of the Encino branch on day 2 of a federal bank takeover.

At least three police squad cars showed up early Tuesday as tensions got heated outside the San Fernando Valley branch of Pasadena-based IndyMac.

Federal regulators seized Pasadena-based IndyMac on Friday and they opened Monday under the control of the Federal Deposit Insurance Corporation.

The FDIC insures bank deposits of up to $100,000 and up to $250,000 for funds in retirement accounts such as an IRA.

The head of the FDIC also said the nation's banking system is sound and that Americans' deposits are "overwhelmingly" safe.

Sheila Bair, the FDIC chairman, said people worried about their money should not be overly concerned because the FDIC is their safety net.

She made her comments on CBS' "The Early Show."

Bair said "no insured depositor has ever lost a penny of insured deposits throughout the FDIC's 75-year history."

Other Economic News:

• Police Brought In On Unruly IndyMac Crowd
• Bernanke Gives Economic, Mortgage Update
• Gas, Food Price Hikes Push Inflation Higher