U.S. House of Representatives approves $700 billion bailout

The U.S. House of Representatives yesterday passed a $700 billion financial industry bailout bill. The landmark legislation now goes to President George W. Bush, who is expected to sign it into law.

In the early afternoon legislators voted, with the final count being processed just before 1:30pm EST.

The Dow, which had been up more than 100 points, rallied further to be up more than two hundred points.

The bill, which was rejected by the House when it was first presented on Monday, was passed by the Senate on Wednesday.

Several Democratic and Republican lawmakers who voted against the earlier version of the plan on Monday have now approved the measure. The final vote was 263 votes in favour, and 171 against.

The plan includes amendments designed to attract the support of the reluctant lawmakers. It limits compensation for the heads of failed financial institutions, and increases the size of bank accounts protected by government insurance against bank failure.

There also are tax breaks for alternative energy companies. The U.S. Senate easily passed the revised version on Wednesday.

President Bush personally lobbied House lawmakers to support the bill.

Monday’s rejection of the bill in the House triggered a dramatic plunge on stock markets, costing investors $1 trillion in stock values.

The bill allows the government to buy faltering mortgage-related investments from financial institutions. Supporters say removing these bad investments will restore the financial health of banks and investment firms, and will encourage banks to resume lending. That will ease the tight credit that threatens to stall the economy. Agencies