Senate OKs $700 billion bailout

WASHINGTON — In a historic vote, the Senate approved a massive $700 billion rescue plan for the nation's finance system Wednesday night but only after tacking on another $110 billion in tax breaks to lure votes from both parties.

A strong bipartisan majority rallied behind the controversial Wall Street bailout package, passing it by 74-25. Utah Sens. Orrin Hatch and Bob Bennett both voted for the legislation.

In the House, leaders were working feverishly to convert enough opponents of the bill to push it through by Friday, just days after lawmakers there stunningly rejected an earlier version and sent markets plunging around the globe.

The measure didn't cause the same uproar in the Senate, where both parties' presidential candidates, Republican John McCain and Democrat Barack Obama, made rare appearances to cast "aye" votes.

In the final vote, 39 Democrats, 34 Republicans and independent Sen. Joe Lieberman of Connecticut voted "yes." Nine Democrats, 15 Republicans and independent Sen. Bernie Sanders of Vermont voted "no."

President Bush issued a statement praising the Senate's move. With the revisions, Bush said, "I believe members of both parties in the House can support this legislation. The American people expect and our economy demands that the House pass this good bill this week and send it to my desk."

The rescue package lets the government spend billions of dollars to buy bad mortgage-related securities and other devalued assets held by troubled financial institutions. If successful, advocates say, that would allow frozen credit to begin flowing again and prevent a deep recession.

Hatch, who had been critical of earlier versions, praised the rewritten bill that passed. "This act is designed to help families. This law will help workers hang on to their retirement savings, help small-business owners make payroll and help restore the American people's confidence in their own financial well-being."

Bennett, who had been one of the chief negotiators on the relief package, said, "This financial rescue package will not solve our financial crisis entirely, but it will help stabilize the economy and restore confidence in the market so our American businesses will not be paralyzed by a credit freeze."

Bennett added, "Tonight we came together in a bipartisan manner and made the right decision for the country. After the drastic decline in the stock market earlier this week, many have finally realized the gravity of this financial crisis and the effect it has on ordinary Americans in our communities."