House Approves Bailout For Financial Markets
The House approved a revised $700 billion financial rescue package, ending a weeklong battle over a controversial measure after lawmakers came under pressure to head off a growing financial crisis.
CNBC.com Bailout Approved
The plan, which was already approved by the Senate, would allow the government to spend billions of dollars to buy bad mortgage-related securities and other devalued assets from troubled financial institutions.
If it works, advocates say, that would allow frozen credit to begin flowing again and prevent a serious recession.
After the House rejected the initial measure on Monday, the Senate revised the bill, adding billions of dollars ot tax breaks to sweeten the package, and approved it Wednesday night.
In efforts to appease GOP opponents, the revised measure includes raising the limit on federal insurance for bank deposits from $100,000 to $250,000.
The bill also extends several tax breaks popular with businesses, provisions that are favorites for most Republicans.
It would keep the alternative minimum tax from hitting 20 million middle-income Americans, which appeals to lawmakers in both parties