US Senate Votes Ok To Bailout Bill, U.S House Of Representatives To Vote On Friday

by Trendy

In an expected development, the United States Senate has passed the bailout bill with a thumping majority. The bailout bill was passed with a 74 – 25 majority. Senators Barack Obama and John McCain left their campaign to be present in the Senate during the vote.

The Bill passed today was very similar to the one that was rejected by the House on Monday. But certain add-ons were made to the Bill to sweeten it a bit for the majority of the Republicans who voted against it. Some of the new provisions included in the revised bill are :

  • FDIC insurance cap raised from $100,000 to $250,000.
  • FDIC to not charge banks extra for raising insurance limit.
  • FDIC can borrow from the Treasury to cover losses incurred.
  • Renewable Energy Tax Breaks including tax breaks for Solar panels.
  • Alternate Minimum Tax relief from “Wealth Tax” extended for another 1 year.

What hasn’t changed in the Bill though is its core. It includes the $700 Billion requested by Treasury Secretary Henry Paulson to buy bad mortgage loans from troubled banks. After the Bill was passed, President Bush was a half-relieved man. He said – “The American people expect – and our economy demands – that the House pass this good bill this week and send it to my desk.”

The Bailout Bill will now make its way to the U.S House of Representatives on Friday for Round 2 of voting.

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