The House of Representatives Friday passed the $700 billion financial rescue package by a vote of 263-171. Passage of the massive legislation was a victory for Wall Street, the Bush administration and congressional leaders, which all lobbied aggressively to win passage through the chamber following an earlier defeat Sept. 29.
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A round of cheers rose from the House floor after the final votes were tabulated.
In a sign of lawmakers' ambivalence about the wildly expensive
bailout of the country's financial firms, roughly 20 "no" votes were
cast during the minute after the "yeas" surpassed 218, the minimum
needed to pass. The rush of votes against the bill was an indication
that House leaders convinced some lawmakers who didn't like the
legislation to hold their votes until it was clear their support
wouldn't be needed.
The Senate overwhelmingly passed the legislation late Wednesday.
Presidential candidates Barack Obama and John McCain both voted for the
bill.
Lawmakers faced intense constituent pressure to vote against the
bill. To win support of reluctant members of Congress, numerous
provisions were added as sweeteners, including energy credits,
healthcare measures and middle-class tax relief. Also added was
taxpayer relief from the Alternative Minimum Tax, which threatened to
hit millions of middle- and upper-income Americans. The package also
allows the Federal Deposit Insurance Corp. to raise the $100,000
coverage limit on individual bank accounts to $250,000.
Other add-ons include renewable energy tax incentives, such as
credits for wind, geothermal and other power systems, and a measure
that would make changes to the way the Securities and Exchange
Commission sets accounting standards for bank assets. Some measures
even appear to be favors for individual House members, including
federal help for a motor sports facility, Puerto Rico rum exports,
railroad track maintenance and refinery costs. - Ron Orol and Bill McConnell
Ron Orol is a Washington-based reporter for The Deal and author of Extreme Value Hedging: How Activist Hedge Fund Managers Are Taking on the World. William McConnell is the Washington bureau chief for The Deal.
