US Senate approves economic bailout plan

Quoted from Yahoo.com

WASHINGTON (AFP) - - The US Senate on Wednesday approved a 700-billion-dollar Wall Street bailout package by a vote of 74-25 amid a widening global crisis sparked by the collapse of the US housing market.
The bill next moves to the House of Representatives, where it faces an uncertain future after lawmakers rejected an earlier version on Monday, sending world markets into freefall.
The Senate nod raised hopes that the amended plan could be on President George W. Bush's desk for final approval by the weekend and eased the panic sparked by Monday's rejection of the plan by the House.
The amended bill raises the ceiling on federal insurance for bank deposits from 100,000 dollars to 250,000 dollars, a move aimed at reassuring savers that their money is safe in banks and avoiding mas withdrawals.
It retains most facets of the original plan which gives Treasury Secretary Henry Paulson the power to buy up tainted mortgage-related assets in troubled banks and includes restrictions on "golden parachute" payoffs for executives.
Opponents of the bill have balked at handing that much power to one man, and reject the notion of using taxpayer money to bailout out disgraced Wall Street firms.
The proposal has run into fierce grass-roots resistance by voters who see it as a reward for imprudent Wall Street money spinners.
Wednesday's surprise Senate vote was called after Democratic and Republican negotiators agreed on the terms of the reframed deal.
New talks were underway in the House meanwhile on tweaking the package to ensure it gets through on a second vote, after lawmakers sensationally killed off the original bill on Monday by 228 to 205 votes.
Earlier in the day, Democratic House Majority leader Steny Hoyer sounded a note of caution, appearing to indicate the bill would only be brought to a vote if it looked certain to pass.
"If there is bipartisan, majority support for the Senate package, we will likely bring it to the floor on Friday," he said in a statement.
Hoyer raised concerns that some of his fellow Democrats who originally voted for the bailout might reject it over the Senate's extension of expired tax breaks for businesses.
"There's no doubt the tax package is very controversial. The Senate, in my opinion, is adding that on because they think that's the only way they can get it passed," Hoyer told NBC ahead of the vote.
Conservative Democrats previously rejected extending such tax breaks unless they can be offset in other areas of the budget in an attempt to curtail the growth of the deficit.
The bailout bill had been expected to encounter less resistance in the Senate than the House, partly because only a third of the chamber's lawmakers are up for re-election on November 4.
Every House member faces voters, and many lawmakers in tight reelection fights opposed the package on Monday.