Senate poised for dramatic bailout voteThe US Senate was poised to vote Wednesday on a 700-billion-dollar Wall Street rescue, reworked after the House of Representatives rocked global markets by spurning a first plan to quell the financial crisis.
Presidential candidates Barack Obama and John McCain For McCain's grandfather and father, see John S. McCain, Sr. and John S. McCain, Jr., respectively
John Sidney McCain III (born August 29, 1936 in Panama Canal Zone) is an American politician, war veteran, and currently the Republican Senior U.S. Senator from Arizona. were set to rush back to Washington for the dramatic vote, as hopes rose that a strong Senate endorsement of the package would prompt the House to quickly follow suit.
US officials say the bailout bailout
The financial rescue of a faltering business or other organization. Government guarantees for loans made to Chrysler Corporation constituted a bailout. must be passed quickly to restore confidence in the financial system and thaw out frozen credit markets which are already hampering the day-to-day running of the economy.
"I'm hopeful that tonight we'll see a strong vote in support of this plan and bipartisanship shown in the Senate today will spark the House of Representatives to do the same," said Senate Majority leader Harry Reid.
"The security and well-being of the American people An American people may be:
The surprise vote was called late Tuesday, after Democratic and Republican negotiators agreed on the terms of the reframed bailout, which includes extended tax cuts for businesses designed to woo Republicans in the House.
In another sweetener Sweetener
A special feature added to a debt obligation or preferred stock to promote marketability.
Warrants and convertibles are two popular sweeteners.
See also: Convertible Bond, Kicker, Warrant
Sweetener , the measure, which requires 60 votes in the 100-member chamber to pass, raises the ceiling on federal insurance for bank deposits from 100,000 dollars to 250,000 dollars.
It retains most facets of the original plan which gives Treasury Secretary Henry Paulson the power to buy up toxic mortgage-related assets in troubled banks and includes restrictions on "golden parachute golden parachute, a contract given to top executives of a corporation to provide benefits in case of job loss due to a takeover by another firm or a merger. The unusually generous benefits may include substantial severance pay, a one-time bonus payment when " payoffs for CEOs.
Opponents of the bill have balked balk
v. balked, balk·ing, balks
1. To stop short and refuse to go on: The horse balked at the jump.
2. at handing that much power to one man, and reject the notion of using taxpayer money to bailout out disgraced Wall Street firms.
New talks were underway in the House meanwhile on tweaking tweaking Vox populi Fine-tuning to produce optimal results the package to ensure it gets through on a second vote, after lawmakers sensationally killed off the original bill on Monday by 228 to 205 votes.
House Majority leader Steny Hoyer raised concerns that some of his fellow Democrats who originally voted for the bailout might reject it over the Senate's extension of expired tax breaks for businesses.
"There's no doubt the tax package is very controversial. The Senate, in my opinion, is adding that on because they think that's the only way they can get it passed," Hoyer told NBC NBC
in full National Broadcasting Co.
Major U.S. commercial broadcasting company. It was formed in 1926 by RCA Corp., General Electric Co. (GE), and Westinghouse and was the first U.S. company to operate a broadcast network. .
Conservative Democrats previously rejected extending such tax breaks unless they can be offset in other areas of the budget in an attempt to curtail the growth of the deficit.
The White House said President George W. Bush would lobby senators ahead of the vote, after being criticized for not doing enough to pressure House members to back a deal he says is vital to staving off an economic nightmare.
"We look forward to the debate, and hope to see strong support. The president will be speaking with senators today," said spokesman Tony Fratto Salvatore Antonio "Tony" Fratto (born June 27, 1966) is Deputy Assistant to United States President George W. Bush and Deputy Press Secretary. Personal
Fratto received his Bachelor's Degree in economics from the University of Pittsburgh. .
"This morning we're seeing increased evidence of the credit squeeze credit squeeze
Restricted bank lending that is accompanied by rising short-term interest rates and a decline in economic growth. Credit squeezes are generally attributed to policy actions of the Federal Reserve. on small businesses and municipalities all across the country, so it's critically important that we approve legislation this week and limit further damage to our economy."
The bailout bill is expected to encounter less resistance in the Senate than the House, partly because only a third of the chamber's lawmakers are up for reelection re·e·lect also re-e·lect
tr.v. re·e·lect·ed, re·e·lect·ing, re·e·lects
To elect again.
re on November 4.
Every House member faces voters and many lawmakers in tight re-election fights opposed the package on Monday. The subsequent plunge of stocks, which took many 401k market-based pension plans down with them, may have altered the political calculation.
"Calls to members offices have changed from being 90 percent don't do this; they're at least 50-50," said Republican House minority whip Roy Blunt on NBC.
"In some offices they're 90 percent, 'You have to do something. This may be the best thing out there.'"
Wednesday's vote means the Senate will, unusually for a finance bill, consider the bailout before the House finalizes the measure.
After Monday's stocks plunge, securities staged a rebound on Tuesday.
But the word on the market was caution on Wednesday, as the Dow Jones Industrial Average Dow Jones Industrial Average
The best known U.S. index of stocks. A price-weighted average of 30 actively traded blue-chip stocks, primarily industrials including stocks that trade on the New York Stock Exchange. dropped 102.74 points (0.95 percent) to 10,747.92 in the first exchanges after a 485-point gain on Tuesday.