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U.S. Senate Vote Set for Bailout Bill

Posted October. 02, 2008 08:48,   


The U.S. Senate will vote on the financial bailout package today that was rejected by the House.

The revised bill reportedly includes an increase in tax incentives and a higher limit for insured bank deposits.

Senators managed to reach an agreement in discussions on the bill’s revision, and decided to put the bill to a vote Wednesday, according to the New York Times.

Though the Senate did not disclose details of the revised bill, it reportedly includes a plan to increase the amount of a bank deposit insured by the federal government to 250,000 dollars from 100,000 dollars.

Along with the measure, the proposal also seeks additional tax breaks for individuals and small companies, and tax credits for the production and use of renewable energy sources, including solar energy.

The revisions will not change the framework of the existing bailout plan, the injection of 700 billion dollars to purchase troubled securities that pose a threat to the financial system.

For the Senate to pass a bill before the House is highly unusual in the United States. The Senate’s move is seen as a strategy to pressure the House to approve the bill.

On the New York Stock Exchange, shares strongly bounced on the news of the Senate effort to pass the bailout bill. The Dow rose 485.21 points or 4.68 percent to close at 10.850.66.

The dollar rose against the euro on the rising prospects of the bill’s passage. At 3:51 p.m. yesterday in New York, the greenback rose 2.5 percent to 1.41 dollar per euro, the highest jump since the euro’s introduction in 1999.