In the midst of hectic parleys between US lawmakers to muster support for the $700-billion financial sector bailout plan, the U.S. Senate is scheduled to vote Wednesday on its version of the Wall Street rescue package. On Monday, the House of Representatives had rejected the original legislation by 228 votes against as opposed to 205 votes in favour of the plan..
The package before the Senate will be similar to the House version, with certain additions, which are not known yet. If the Senate approves the package, it would go to the House, which is expected to reconvene on Thursday.
On Monday, after the House rejected the plan, Dow Jones Industrial Average registered 777-point single day drop. However, the markets bounced back on Tuesday with Dow Jones Industrial rallying about 500 points.
On Tuesday morning, President George Bush appealed to the law makers to pass the bail-out package, else, he warned, the nation will go through a “paiful and lasting” economic crisis.
The Senate will be voting on a new version of rescue package for the financial markets. The two sides of the lawmakers had gone into a huddle on Tuesday to work out a package that can muster support from the members.
The House defeated the plan on Monday as they were not willing to risk tax payers’ money in bailing out troubled Wall Street institutions and buying out toxic mortgages. More so in an election year.