The Senate passed a controversial bailout late Wednesday night. While it is similar to the one that was presented to the House two days prior key points won over those who had rejected Monday's vote.
The final vote of 74 to 25 took three hours of floor debate. Both Obama and McCain vote in favor of the bailout.
The bill goes with the Bush administration's pay to buy up $700 billion of assets from financial institutions. The plan is to free up banks to be able to start lending again.
There are new provisions though aimed at Main Street.
CNN reports:
"If we do not act responsibly today, we risk a crisis in which senior citizens across America will lose their retirement savings, small businesses won't make payroll ... and families won't be able to obtain mortgages for their homes or cars," said Senate Majority Leader Harry Reid, D-Nev., moments before the vote.
In a press briefing after the vote, Senate Minority Leader Mitch McConnell. R-Ky., said, "This is a measure for Main Street, not Wall Street. [It will help] to unfreeze our credit markets and get the American economy working again."
The House of Representatives is expected to also pass the revised bill when they vote on it Thursday.
The add-ons that the Senate included in the revision will add to the $700 billion that the Treasury will use in saving the banks. It is expected that taxpayers will make back much of that if in fact all of the money used is not regained.
One of the revisions is raising the FDIC insurance cap to $250,000 from $100,000. The FDIC may not charge member banks to cover the increase in coverage. The bill allows for the FDIC to borrow from the Treasury to cover any loses that may result from the higher insurance limit.
Another key point in the new bill is renewable energy tax breaks for individuals and businesses, including a deduction for the purchase of solar panels.
A host of other expiring tax breaks will be continue to be hosted. That includes the research and development credit for businesses and the credit that allows individuals to deduct state and local sales taxes on their federal returns.
There will also be another year for relief from the Alternative Minimum Tax.
$250 billion will be made available immediately with the rest of the $500,000 billion coming in stages.
There are also a number of provisions that will protect taxpayers. One would direct the president to propose a bill requiring the financial industry to reimburse taxpayers for any net losses from the program after five years. And the Treasury would be allowed to take ownership stakes in participating companies.
Now it's up to the House.
CNN reports:
The reality has hit some members," said House Financial Services Chairman Barney Frank, D-Mass., late Wednesday on CNN. "The main change is reality - it's not possible now to scoff at the predictions of doom if we don't do anything."
The lead House Republican, Rep. John Boehner, R-Ohio, was consulted on the Senate's plans and gave his "green light," spokesman Kevin Smith said. "We believe we'll have a better chance to pass this bill than the one that failed [Monday]," he added.
