House Approves Bailout Plan

Washington - The U.S. House of Representatives voted to approve a revised $700 billion bailout plan for the financial markets Friday, just four days after rejecting the original version and clearing the way for President Bush to sign the historic package.

The House's vote follows the Senate's approval on Wednesday and gives the Treasury secretary extraordinary power to buy bad assets from financial companies, boosts federal bank insurance and requires the government to modify some mortgages. It also contains a host of controversial tax breaks and some caps on executive pay.

House lawmakers voted 263 to 171 to pass the bill, reversing the chamber's rejection of it on Monday, which sent the Dow Jones Industrial Average into an almost 800-point dive.

House leaders were cautiously optimistic before the vote, but uncertainty over its fate lingered until the last minute. Many members said the bill wasn't perfect but that action was needed to get the flow of credit going again and to help taxpayers.

Source: MarketWatch