There is some hope on the bailout front now. The US Senate has passed the revised financial rescue package on Wednesday night. Certain additions to the bill ensured a victory at Senate by 74 to 25 in favor. However, the core of Bush's rescue plan survives in the Senate bill, according to Wall Street Journal. The bill authorises Treasury to borrow $700 billion to buy up toxic mortgages, securities and other financial instruments that wreaked havoc on the US financial system.
Now the revised package will go to the House of Representatives - which rejected an earlier version of the bill on Monday - for its reconsideration.
Apparently the new bill contains some provisions that could complicate efforts to push the $700 billion plan through the House of Representatives, according to Wall Street Journal. It said the compromise bill has additions such as an increase in bank deposit insurance limits, a change in accounting rules, and a $150.5 billion package of unrelated personal and corporate tax cuts.
Several behind the scene moves by the top officials of Bush Administration and law makers have ensured the passage of the bill in the Senate.
President George W. Bush on Tuesday had warned that the non-passage of the bailout plan would have sever repercussions for the economy.
The 10-year, $150.5 billion package of tax proposals include steps to ease the bite of the alternative minimum tax, as well as research-and-development tax credits coveted by high-tech companies and drug makers. Its addition is designed to secure the support of Republicans, who were overwhelmingly opposed in the House. But it could irk conservative House Democrats because the measure will add to the deficit, said Wall Street Journal.
The bill, which started out less than three pages long, now comprises more than 400 pages.
A spokesman for Rep. John Boehner of Ohio, the minority leader, has been quoted as saying: "We believe we have a better chance of passing this bill than the one on Monday, but we'll have to wait and see." The House could vote Thursday or Friday.