Bailout bill passes

Bailout bill passes

POSTED 10/03/2008 - Congress approved a $700 billion government bailout of the battered financial industry on Friday and President Bush quickly signed it.

"There were moments this week when some thought the federal government could not rise to the

President George W. Bush signs the Emergency Economic Stabilization Act of 2008 in the Oval Office Friday, Oct. 3, 2008, at the White House. White House photo by Eric Draper

challenge. But thanks to the hard work of members of both parties in both Houses -- and a spirit of cooperation between Capitol Hill and my administration -- we completed this bill in a timely manner," said President Bush. "By coming together on this legislation, we have acted boldly to help prevent the crisis on Wall Street from becoming a crisis in communities across our country. We have shown the world that the United States of America will stabilize our financial markets and maintain a leading role in the global economy."

The final vote passing the measure was 263-171. The vote was sounded defeated Monday, but a revised version was drafted winning Senate approval Wednesday night.

The bill gives the Treasury Department $700 billion to purchase troubled assets that are weighing down the balance sheets of institutions in a bid to kick-start the flow of credit in the U.S.

President George W. Bush shakes hands with Secretary Hank Paulson of the U.S. Department of Treasury after visiting the department Friday, Oct. 3, 2008. White House photo by Eric Draper

economy.

The President praised Treasury Secretary Hank Paulson saying,  "Mr. Secretary, you and your team have worked incredibly hard. You've worked with the Congress; you've worked with the financial markets, both domestically and internationally. I know that your people are exhausted in there, and I really appreciate the fact that I'll be signing a piece of legislation that will be a part of solving this crisis, an important part of solving the crisis."

 The financial market rebounded up more than 200 points at the time of the House vote, but ended the day down 157 after a gloomy report on the job market. Labor Department statistics say 159,000 jobs were cut in September, the largest amount in five years.