Senate Approves Financial Rescue Plan
Saturday, October 04, 2008
The U.S. Senate passed the $700 billion financial industry bailout last night by a wide margin, 74-25. Keeping the core of the original plan intact – buying up troubled mortgage assets – the Senate version adds in several new provisions, including a number of tax breaks and credits, temporarily raising the insured deposit limit to $250,000, and allowing the Federal Deposit Insurance Corporation (FDIC) to borrow from the Treasury Department to cover any losses.
John A. Courson, COO of the Mortgage Bankers Association (MBA) said his organization was “extremely pleased” with the Senate's passage of H.R. 1424, the Emergency Economic Stabilization Act of 2008 (EESA). “The current crisis in the credit markets stretches far beyond the mortgage industry and, if not addressed, threatens Americans' ability to get business, auto, and other types of loans and could drag down the entire U.S. economy,” Courson said. “The House needs to pass this bill and give the Treasury the ability to help unlock the credit markets and re-energize our economy.”
Commenting on Congress' revival of EESA, the Securities Industry and Financial Markets Association’s (SIFMA) president and CEO, Tim Ryan, said, “This legislation wisely provides the Treasury Department maximum flexibility to restore the health of our credit markets which will ensure all Americans continue to have access to loans for homes, cars and education. It also guarantees the necessary government oversight and accountability, while building in a series of important protections for taxpayers.”
“We expect participation in the plan to be attractive to a broad range of financial service firms,” continued Ryan. “Once the program is underway, it should steadily improve the circulation of capital which is so critical to a well-functioning financial system.”
Both presidential candidates, Senator John McCain (R-Arizona) and Senator Barack Obama (D-Illinois), flew to Washington D.C. yesterday to cast their votes in favor of the measure. As DSNews.com reported on Tuesday, McCain and Obama have spent time on the campaign trail trying to drum up taxpayer support for the bailout legislation, where both candidates proposed raising the FDIC's federal insurance limit as part of the bill.
The House is meeting on the new wording of the bill today, following its staggering rejection of the plan earlier this week. Officials believe that Republican opposition has now softened and are hoping to push the legislation to a House vote by Friday.
John A. Courson, COO of the Mortgage Bankers Association (MBA) said his organization was “extremely pleased” with the Senate's passage of H.R. 1424, the Emergency Economic Stabilization Act of 2008 (EESA). “The current crisis in the credit markets stretches far beyond the mortgage industry and, if not addressed, threatens Americans' ability to get business, auto, and other types of loans and could drag down the entire U.S. economy,” Courson said. “The House needs to pass this bill and give the Treasury the ability to help unlock the credit markets and re-energize our economy.”
Commenting on Congress' revival of EESA, the Securities Industry and Financial Markets Association’s (SIFMA) president and CEO, Tim Ryan, said, “This legislation wisely provides the Treasury Department maximum flexibility to restore the health of our credit markets which will ensure all Americans continue to have access to loans for homes, cars and education. It also guarantees the necessary government oversight and accountability, while building in a series of important protections for taxpayers.”
“We expect participation in the plan to be attractive to a broad range of financial service firms,” continued Ryan. “Once the program is underway, it should steadily improve the circulation of capital which is so critical to a well-functioning financial system.”
Both presidential candidates, Senator John McCain (R-Arizona) and Senator Barack Obama (D-Illinois), flew to Washington D.C. yesterday to cast their votes in favor of the measure. As DSNews.com reported on Tuesday, McCain and Obama have spent time on the campaign trail trying to drum up taxpayer support for the bailout legislation, where both candidates proposed raising the FDIC's federal insurance limit as part of the bill.
The House is meeting on the new wording of the bill today, following its staggering rejection of the plan earlier this week. Officials believe that Republican opposition has now softened and are hoping to push the legislation to a House vote by Friday.
