Senate Passes Revised Bailout Bill

NewsOn6.com & The Associated Press

WASHINGTON (AP) - The U.S. Senate voted Wednesday night to approve a revised bailout plan for the nation's struggling financial industry.  The vote was 74 to 25.  Oklahoma Senator Jim Inhofe voted against the plan while Senator Tom Coburn voted for it.

The $700 billion package had been revised since Monday's defeat in the House - a vote that sent stocks tumbling. It now includes tax breaks for businesses and the middle class, and a boost in the deposit insurance limit to $250,000.

Other key points of the revised plan include:

• $250 billion available immediately
• $100 billion available at the president's discretion
• $350 billion subject to Congressional approval
• Executive pay limits
• Several layers of oversight

Republican presidential candidate John McCain voted in favor of the plan saying he's pleased with the changes in the new financial rescue plan.  Rival democrat Barack Obama also voted in favor of the plan saying it is not perfect, but necessary to "keep a crisis from turning into a catastrophe."

House leaders from both parties say they hope the new version can be cleared late this week. Some Republicans in the House who voted against the plan on Monday are said to be considering a switch.

The legislation essentially lets the government buy bad mortgages and other devalued assets held by troubled financial institutions.

There's been a flood of e-mails, calls and letters from constituents angry that Congress hasn't acted on the financial crisis. House Republican Whip Roy Blunt says the messages were running about 90% against it earlier, and are now about 50-50.

In related news, stocks settled with modest losses on Wednesday. The Dow lost nearly 20 points, while the S&P dropped 5 points and the Nasdaq fell 22 points.