The U.S. Senate passed the $700 billion financial industry bailout last night by a wide margin, 74-25. Keeping the core of the original plan intact-buying up troubled mortgage assets-the Senate version adds in several new provisions, including a number of tax breaks and credits, temporarily raising the insured deposit limit to $250,000, and allowing the Federal Deposit Insurance Corporation (FDIC) to borrow from the Treasury Department to cover any losses.
Commenting on Congress' revival of EESA, the Securities Industry and Financial Markets Association's (SIFMA) president and CEO, Tim Ryan, said, 'This legislation wisely provides the Treasury Department maximum flexibility to restore the health of our credit markets which will ensure all Americans continue to have access to loans for homes, cars and education. It also guarantees the necessary government oversight and accountability, while building in a series of important protections for taxpayers.'
Officials believe that Republican opposition has now softened and are hoping to push the legislation to a House vote by soon."
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