In less than a half hour Wednesday night, the U.S. Senate approved a massive bailout plan for failing US credit markets.
It's very similar to the one rejected Monday by the U.S. House. It provides a minimum $250 billion in aid and a maximum $700 billion. However, with several changes, experts think it has a better chance to pass Friday in the house. The idea is to have the government buy out bad mortgages which will free up money for banks to begin lending again.
It's Senate Bill 1424 and it's called The Emergency Economic Stabilization Act of 2008. The bill passed in the Senate 74 to 25 and there are several changes that make this bill different from the one that failed Monday.
The first is how the original $700 billion will be spent. This new bill has that money broken down into three different amounts.
Other notable changes include:
Both presidential candidates voted yes to the new bill and Texas senator Kay Bailey Hutchinson, who also voted yes, commented on the bill before the vote. "Stabilizing our economy is the most important responsibility that our Congress has right now. We know that it is our responsibility to save the financial integrity of our country for every person who has a pension fund, for every person who has a lifetime savings in a bank," Hutchinson said.
Texas Senator John Cornyn echoed Hutchinson's remarks along with 72 other senate democrats and republicans.
Again, Wednesday night's vote of 74 to 25 passes the Senate's version of the federal bailout for our nation's economy. It now goes to the House where it's hoped the changes made in the bill will make up the 12 votes needed for the bill to become reality.
Senate Passes $700B Rescue; House Votes Lured