Bailout clears Senate, returns to House

The Senate breathed new life into the government’s scuttled $700 billion bailout package this evening when it approved a modified version of the bill by a vote of 74 to 25.
OCT 01, 2008
By  Bloomberg
The Senate breathed new life into the government’s scuttled $700 billion bailout package this evening when it approved a modified version of the bill by a vote of 74 to 25. The bill, defeated by the House on Monday by a vote of 228 to 205, is expected to return there for a vote on Friday. The Senate’s revised bill sweetened the original package by tacking on a number of tax breaks and other perks in the hopes of swaying the House to reverse its original veto. The add-ons include tax breaks for businesses, users of alternative energy and hurricane victims as well as relief from the alternative minimum tax. Also, it would boost the limit on FDIC-insured bank deposits to $250,000 from $100,000 for one year. Additionally, a bill boosting improved health insurance for mental health was wrapped into the package. In all, the add-ons bring the potential package cost to over $800 billion, according to published reports. The revised bailout received the support of both presidential candidates. “It marks a decisive step in the right direction,” said Sen. John McCain, R-Ariz, prior to the vote. “This is not just a Wall Street crisis, it’s an American crisis,” said Sen. Barack Obama, D-Ill. earlier in the day. “I commend the Senate for tonight’s strong bipartisan vote,” Treasury Secretary Henry Paulson said in a statement. “This sends a positive signal that we stand ready to protect the U.S. economy by making sure that Americans have access to the credit that is needed to create jobs and keep businesses going.” Senate Republican leader Mitch McConnell, R-Ky, commended his colleagues for their bipartisan support for the bill. “In the years that I’ve been here, I can’t recall a single time in this close proximity to an election, both sides have risen above the temptation to engage in partisan game-playing to address an issue of great magnitude,” he said. However, it’s not clear if the House will be swayed. American taxpayers have swamped many representatives’ offices with e-mails and phone calls, with overwhelming majority urging them to vote down the bill.

Latest News

Integrated Partners, Kestra welcome multigenerational advisor teams
Integrated Partners, Kestra welcome multigenerational advisor teams

Integrated Partners is adding a mother-son tandem to its network in Missouri as Kestra onboards a father-son advisor duo from UBS.

Trump not planning to fire Powell, market tension eases
Trump not planning to fire Powell, market tension eases

Futures indicate stocks will build on Tuesday's rally.

From stocks and economy to their own finances, consumers are getting gloomier
From stocks and economy to their own finances, consumers are getting gloomier

Cost of living still tops concerns about negative impacts on personal finances

Women share investing strengths, asset preferences in new study
Women share investing strengths, asset preferences in new study

Financial advisors remain vital allies even as DIY investing grows

Trump vows to 'be nice' to China, slash tariffs
Trump vows to 'be nice' to China, slash tariffs

A trade deal would mean significant cut in tariffs but 'it wont be zero'.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.