US Senate approves $ 700 billion rescue plan, House of Representatives to take final decision

The American Senate approved the 700 BN bailout plan put up by the Bush administration and the Treasury secretary, Henry Paulson. Both Paulson and George W. Bush welcomed the decision and asked the House of Representatives to follow the example as soon as possible.

„The legislation, approved last night on a 74-25 vote, authorizes the government to buy troubled assets from financial institutions rocked by record home foreclosures. It contains two provisions favored by House Republicans: One raises the limit on federal bank-deposit insurance; the other reiterates the authority of securities regulators to suspend asset-valuing rules that corporate executives blame for fueling the crisis”, Bloomberg.com reads.

Both presidential nominees, Democrat Barack Obama and Republican John McCain, returned from the campaign trail to vote in favor of the plan.

Tax provisions in the new version of the plan are expected to win the necessary votes in the House of Representatives, several politicians declared for the US media and the international press agencies.