Senate approves adjusted bailout plan

Senate approves adjusted bailout plan

POSTED 10/02/2008 - The $700 billion financial industry bailout won the votes in the Senate Wednesday and seems to be gaining momentum in the House as they ready for a vote on Friday.

Senators added tax breaks and other sweeteners including raising the cap on federal deposit

insurance, to the bill before passing it 74-25. In the final vote, 40 Democrats, 33 Republicans and independent Sen. Joe Lieberman of Connecticut voted "yes." Nine Democrats, 15 Republicans and independent Sen. Bernie Sanders of Vermont voted "no." John McCain and Barack Obama both voted "yes."

The bailout package lets the government utilize billions of dollars to buy bad mortgage-related securities and assets held by troubled financial institutions. Advocates say that will jump start the economy and prevent a deep recession.

House lawmakers rejected an earlier version of the bill Monday and their actions had world financial markets reeling.