The Senate Passes the Revised Bailout Bill
The US Senate overwhelmingly passed a revised bailout bill in a late evening vote on Wednesday October 1st. Politicians from both parties hope the revisions make the bailout bill more palatable to the House Of Representatives. The bill allows government to purchase troubled assets from financial institutions and banks distressed by record home foreclosures. The revised bill contains two major revisions favored by House Republicans, The first, raises the limit on federal bank-deposit insurance while the second provision reiterates the authority of securities regulators to suspend asset-valuing rules that many blame for the crisis.
Supporters of the Bailout
Supporters of the bailout cited the 778 point drop in the Dow Jones Industrial Average caused by the defeat of the bill in the house. The drop was used as evidence of the urgency to bring stability to the banking system. It is hoped that the drop in the Dow will spur reluctant Republicans in the House to support the revised bill. The dollar rose against the Euro after the vote and advanced to $1.3883 per euro at 12:46 p.m. in London, from $1.4009 late yesterday in New York. Forex traders worldwide are awaiting Friday’s House vote.
Bill Faces Uncertain Future in the House
Passage in the House remains uncertain. House Majority Leader Steny Hoyer told MSNBC that no Democrats who previously opposed the measure had changed their minds. Said Hoyer, “We don’t have any more Democrats at this hour” Some Republicans have not changed their positions either. Said Representative Joe Barton of Texas, “The bill that they are going to send back is the same bill that I voted against two days ago, Why would I turn around and vote for it tomorrow evening or Friday?”
Bush Meets With Business Leaders
President Bush was pleased with the Senate vote saying, “the bill the Senate passed is essential to the financial security of every American.” Bush has met with several business leaders including the Chamber of Commerce and the National Association of Manufacturers, seeking their support for the bailout bill.
The bill is scheduled for a vote Friday, October 3rd in the House. It’s been a hectic week for both stock markets and Forex traders. More turbulence is sure to come so stay tuned. At present the dollar is strong but many Forex traders are expressing concern about the future of the dollar–stay tuned.
