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.
