Congress approves $700bn bailout
Friday, 03 Oct 2008 19:52
House of Representatives votes to approve Bush administration's $700 billion economic rescue package
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The House of Representatives has voted to approve the Bush administration's $700 billion economic rescue package.
The bailout bill was put before congressmen and women today, four days after world markets were sent tumbling when the plans were initially rejected in a shock outcome.
The bill was approved by 263 votes to 171 against.
In an initial reaction to the vote, George Bush said he would now sign the bill into law.
"There were moments this week when it appeared the federal government could not rise to the challenge," the president admitted.
But he went on to say: "We've shown the world the US will stabilise our financial markets and continue to play a leading role in the global economy."
It had been hoped that the strong vote in the Senate on Wednesday – the bill was approved by 74 votes to 25 – and key amendments would see the rescue package approved in the lower house.
In a surprise move, the Dow Jones fell slightly after the bill was approved by the House of Representatives.
Mr Bush had already warned of "economic hardship for millions of Americans", while treasury secretary Henry Paulson said the situation on Wall Street was becoming more precarious every day that the bill remained unapproved.
In the UK, prime minister Gordon Brown had expressed hope that "reason would prevail" on Capitol Hill, while in the
European Union, French president Nicolas Sarkozy is reportedly hoping to see a €300 billion (£237 billion) rescue package approved.
EU leaders are due to discuss the global financial crisis on Saturday, but Germany has already rejected talk of a European bailout.